How do or did you folks estimate income taxes in retirement?
IF I never got another paycheck, we would have some regular income, some partially sheltered income and some completely sheltered income. I can figure out those amounts. I can figure out about what our deductions/exemptions will be under current tax law. And I can figure out what our tax would be under current tax law.
How do you conservatively estimate how much of it Uncle Sam will take going forward?
The only thing that made sense to me was to estimate the best I can based on current tax laws and assume that the taxes on my earned income would go away when I quit earning income, but that the other taxes will likely be a bit more than they are now. Fortunately, the tax free portion of our retirement income will be significant, unless they change the rules on us.
Or am I trying to estimate this stuff too close?
IF I never got another paycheck, we would have some regular income, some partially sheltered income and some completely sheltered income. I can figure out those amounts. I can figure out about what our deductions/exemptions will be under current tax law. And I can figure out what our tax would be under current tax law.
How do you conservatively estimate how much of it Uncle Sam will take going forward?
The only thing that made sense to me was to estimate the best I can based on current tax laws and assume that the taxes on my earned income would go away when I quit earning income, but that the other taxes will likely be a bit more than they are now. Fortunately, the tax free portion of our retirement income will be significant, unless they change the rules on us.
Or am I trying to estimate this stuff too close?