Taking advantage of the One Big Beautiful Bill
jsyates1973
Member Posts: 2 Newcomer
We want to take advantage of the additional $6,000 deduction (per 65+ person, married filing jointly) in 2025, and maximize the withdrawal within the 12% tax bracket.
To calculate how much I can withdraw within the 12% bracket it seems to me that I will add:
$94,300 (the maximum adjusted income within the 12% bracket)
$31,500 (the standard deduction for married couples over 65 filing jointly0
$12,000 ($6,000 additional deduction each for persons over 65)
Equalling $137,800. This is the maximum income that remains within the 12% bracket.
The income tax paid will be the maximum paid for the 12% bracket which is $10,852.
This makes sense to us but want to be sure we've taken everything into consideration.
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Comments
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Hi jsyates1973,
I believe you have taken everything into consideration. The deduction is reduced for MAGI over $150,000 and is eliminated for MAGI over $250,000. So, you would still be eligible at $137,800 for the 12% tax bracket.1 -
Thanks so much!
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