RASAP
Recycles dryer sheets
- Joined
- May 18, 2006
- Messages
- 120
I am using TurboTax 2019 to do a little what-if look ahead for 2020 and I am seeing something odd that I hope someone can help me understand.
I have entered into TurboTax all of my 2020 estimates for interest, dividends, and Social Security. No capital gains as I will be withdrawing from my tIRA (all pre-tax) to cover my remaining annual expenses.
Starting at a 38k tIRA withdrawal and then incrementing it by $1000 I get the following table (no other TurboTax data changed):
tIRA Withdrawal ($)………Tax Due ($)……….Tax rate (%)
38k 5972
39k 6183 21.1
40k 6422 23.9
41k 6881 45.9
42k 7344 46.3
43k 7806 46.2
44k 8271 46.5
45k 8736 46.5
46k 9202 46.6
47k 9669 46.7
48k 10097 42.8
49k 10351 25.4
50k 10554 20.3
Less than 39k and greater than 50k has a tax rate around 21%.
So, why does my tax rate more than double between 41k and 48k but remain around 21% above and below this 8k span?
I have entered into TurboTax all of my 2020 estimates for interest, dividends, and Social Security. No capital gains as I will be withdrawing from my tIRA (all pre-tax) to cover my remaining annual expenses.
Starting at a 38k tIRA withdrawal and then incrementing it by $1000 I get the following table (no other TurboTax data changed):
tIRA Withdrawal ($)………Tax Due ($)……….Tax rate (%)
38k 5972
39k 6183 21.1
40k 6422 23.9
41k 6881 45.9
42k 7344 46.3
43k 7806 46.2
44k 8271 46.5
45k 8736 46.5
46k 9202 46.6
47k 9669 46.7
48k 10097 42.8
49k 10351 25.4
50k 10554 20.3
Less than 39k and greater than 50k has a tax rate around 21%.
So, why does my tax rate more than double between 41k and 48k but remain around 21% above and below this 8k span?