Tax Bracket Question

[BooBoo]

I am pretty sure I have got this correct. Just wanted a sanity check before I withdraw funds this year.

Married filing jointly

Adjusted gross income $93863
Standard deduction $12600
Exemptions $8000

Taxable Income $73263

I am planning to withdraw funds from my IRA or 401K (over 59.5) to increase my gross income to the above level of $93863.

I think this maximizes my income to the top of the 15% tax bracket ?

Thank you

Boo

 

[gauss]

Personal Exemptions rise to $4050 each in 2016.
Standard Deduction shown (MFJ) applies if you were born after Jan 1, 1952 and not blind.

$75,300 of taxable income is the top of the 15% tax bracket in 2016 for MFJ returns.

If you have ordinary dividends or long-term capital gains then I would verify with a provisional tax return using 2016 tax software.

-gauss
"knee deep in training material for 2016 IRS VITA/TCE Volunteer training/certification"

 

[kaneohe]

close........for 2016 top of 15% bracket is 75300. Also exemption for 2 is
8100 so you have a little more upside room.

well, at least you have confirmation.......gauss is too fast!

 

[pb4uski]

One thing to keep in mind is if your income includes qualified dividends and/or long term capital gains, then if you overshoot, any excess will be taxed at ~30%.. the extra income is taxed at 15% ordinary rates and the increase bumps some qualified dividends/LTCG into the 15% capital gains rate.

You can mitigate this by making a portion of your withdrawals a Roth conversion and then recharacterize any excess. I have done that for a couple years now... I do my return and then convert more or recharacterize if necessary so my taxable income is exactly equal to the top of the 15% tax bracket.

 

[BooBoo]

Thanks to all for quick replies.