I’m trying to understand what my ‘income’ looks like in retirement. But it’s not all clear to me, and I would appreciate some input from the forum community.
I think I pay state and federal income taxes on:
• My husband’s pension (100%)
• My pension (100%)
• My husband’s SS (85%)
• Rental income (100% minus deductions and depreciation)
Right?
FICA on none of the above, right? Medicare?
If I take money from my ROTH, the contribution amount (that is at least 5 years old) does NOT count as taxable income, right? If I were to take out more (earnings) that WOULD be taxable, right?
When I take money from my taxable account, do I have to count that as taxable income? I think I do, but I’ve already paid taxes on it so it feels like a double whammy. I know I’m missing something very simple here, but don’t know what it is.
So, it looks something like this:
• Husband’s pension $500/month $6000/yr
• My pension $2500/month $30000/yr
• Husband’s SS $2000/month $24000/yr (85%=$20,400)
• Rental income $2000/month $24000/yr (depreciation and deductions = $12,000)
• Total $7000/month $84000/yr
Of the $84000, $68,400 is taxable?
(6000+30000+20400+12000=68,400 in taxable income * 15% = $10,260 in taxes…). So my actual in-my-pocket income is $73,740 ($6145/month)
So if I take out money from my non-tax deferred accounts, that becomes taxable income too? What else will be withheld from any of these sources of income? What other factors change the equation?
I said once before on the forum that I hate figuring out taxes like a 2 year old hates naps! But I don’t want to cipher our income and then be hit by items I don’t know about or don’t understand.