What is the Sweet Spot for Taxable Income?

[ownyourfuture]

I'm 55, retired, & single, so my sweet spot is just under 48k

 

[Texas Proud]

I have 4 people on my policy, so the credits are valuable to me...

I will not have less by the time I make medicare... but shortly after that it will be down to 2 and I will then be working on converting tIRA to ROTH....

This is a multi-year plan... and no way around unless I pay big bucks...

 

[rodi]

I think it varies from person to household.

Like Texas Proud - I have dependents (minors) on the policy... And like SecondCor - I'm in the fafsa consideration window. (I have a Jr. and a Freshman in high school).

In the past we've spent what we spent (no engineering) - and done Roth conversions up to just under the 400%. We're shrinking the Roth conversion now that we're in FAFSA look back. I don't think we'll qualify for financial aid - which is why we have 529's... But if we do... great. I'll find out more in the next 2 years when, hopefully, older son gets accepted at the college of his dreams and we go through the first year of the FAFSA/CSS system.

FWIW - this isn't about gaming the system... It's about understanding the system and taking advantages of tax code and college financing system and not making stupid decisions with negative impacts. As I said - we spend what we spend, and don't engineer our taxable income other than Roth conversions... which is legal, known, and allowed.

I'm going to a seminar at the local high school this Tuesday to find out more about the whole financial aid thing... I've got some unusual circumstances that aren't covered in the internet articles and there will be "experts" and "consultants" there - so I'll get cards, pick one, and ask my questions in a private session. No different than seeking tax advice from a CPA or tax attorney.

 

[Texas Proud]

I think it varies from person to household.

Like Texas Proud - I have dependents (minors) on the policy... And like SecondCor - I'm in the fafsa consideration window. (I have a Jr. and a Freshman in high school).

In the past we've spent what we spent (no engineering) - and done Roth conversions up to just under the 400%. We're shrinking the Roth conversion now that we're in FAFSA look back. I don't think we'll qualify for financial aid - which is why we have 529's... But if we do... great. I'll find out more in the next 2 years when, hopefully, older son gets accepted at the college of his dreams and we go through the first year of the FAFSA/CSS system.

FWIW - this isn't about gaming the system... It's about understanding the system and taking advantages of tax code and college financing system and not making stupid decisions with negative impacts. As I said - we spend what we spend, and don't engineer our taxable income other than Roth conversions... which is legal, known, and allowed.

I'm going to a seminar at the local high school this Tuesday to find out more about the whole financial aid thing... I've got some unusual circumstances that aren't covered in the internet articles and there will be "experts" and "consultants" there - so I'll get cards, pick one, and ask my questions in a private session. No different than seeking tax advice from a CPA or tax attorney.

I have gone through for a second time recently.... one thing that I was surprised is that you do not have to disclose your retirement accounts... I still have too much in taxable and DS's costs are just above what I think it the minimum they expect ($25K I have read)....

No grants for us... and no subsidized loans... we do get gvmt unsubsidized which is good since there are payment plans in the future...

Maybe I will need to look to see if there is a seminar around to see if there is anything else.... I have a DD going in 5 years...