Hello wise mustachians,
I would really like some reassurance that DH and I are on the right track for IRAs, or corrections/suggestions if we're not.
For 2015 I have tried (on turbotax) joint and separate, with both standard and itemized deductions. The house where we live is in my name only (from long before our marriage). It looks like it works out that our combined income for 2015 was $155,700.
- If we file separate/itemized, we will get a refund of $5,044.
- If we file joint/itemized, we will get a refund of $4,900.
This will be our first year opening IRAs. I have read and re-read the IRA contribution rules and I just worry that I'm not understanding all the way. I think we should file jointly even though the refund is slightly lower because otherwise we could not contribute to IRAs at all. We should both open Roth IRAs because we can't deduct any tIRA contributions to lower our tax burden due to our high income. Does this sound right?
We both cranked up our 401k contributions midway through 2015 and I guess that's why our refund is so huge. Last year we owed. This year we're set to max our 401ks and I think our withholdings are optimized to get us closer to the zero sweetspot. Unless, as we fervently hope, we get to add some kids to the mix. :-)
Thank you for any advice!