So I have been trying to figure out how to optimize my money this year, and get myself to a lower tax bracket. I *think* I'm understanding it, but would love for someone else to take a look and tell me if I'm actually doing this right! Here's what I've figured out.
GOAL: 37450 AGI or less
Switched jobs midyear
Salary:
$21,489-MJFF (Jan-Mid June)
$2,000 MJFF Bonus
$32,497- NB (Estimated MidJune-December, total annual salary 52000)
$55,986 Total AGI
-$37,450 Needed to qualify for 15% bracket
=$18,536 still need to contribute to lower tax bracket
-$3,000 YTD MJF 401K contribution
=$15,536
-$3,000 NB 401K contribution (just started, but set at 10% contribution, so $400 a month*7.5 months that I'll be contributing this year)
=$12,536
-$1,376 FSA transit
=$11,160 left to contribute to meet goal
I think that the easiest way to meet the rest of the $11K goal is to up the contribution to my 401K, but the question that I am not sure about it, how do I do that/what percentage do I up my contribution to?
Also, I am currently paying down my student loans, so am expecting the $2,500 tax deduction. Would that come out of the $11K remaining, or am I completely wrong here?
Lastly, since I left my previous employer, I plan to roll my 401K over into a t.IRA with Vanguard. Because it's still tax sheltered, I don't think that should affect anything, but am I wrong there?
Any help appreciated! This is my first crack at this :)