I want to replicate the Dinkytown results using back of the envelope calculations to make sure that I fully understand all the moving parts. Not 100% sure how to handle Social Security but think I now have it right but a second set of eyes by people who enjoy this type of thing is helpful.
tax estimate 2023
wages,salary,etc............0
taxable interest...........20
ordinary dividends.....5000
qualified dividends.....4800
ira distributions.......50000
capital gain/(loss)....(3000)
total income...........47220
adj. to income(hsa)..(4850)
AGI......................42370
std deduction........(13850)
taxable income........28520
I'm also just listing inputs and limits on the back of an envelope. My biggest wrinkle is trying to reverse engineer the EITC phase-in and phase-out points around the max credit. The IRS announces the max credit, and last $ before phaseout, I have to back out the credit curve myself, until they publish the draft 1040 booklet with the EITC table. Everything else is straightforward.
I am a single senior who wants the highest AGI that still keeps me in the 0% tax bracket.
It seems that I add half my SS benefits to all other stuff. Then I subtract that number from 25K. Then I take 50% of that result and add it to my other stuff to get my AGI. My objective is to come as close as possible to $15,700 without going over. Does this look correct?
Statistics: Posted by Arby — Sun Dec 24, 2023 12:22 am — Replies 12 — Views 704