Re: Tax Planning...
Hi TF,
Thanks for putting this together. I'm still a few years off, but looking at tax planning is always a useful exercise. I have a question concerning this statement: "In all likelihood mear mortals will remain in 10% tax bracket above that."
I believe based on your calculation that the $39,375 amount is what is carried down to 1040 Line 10, Taxable Income. This is after the identified deductions are removed from the gross amount of $53,225. (I'm using 2018 tax tables.) The remaining taxable income amount pushes into the 22% tax bracket, thus any additional non-LT cap gains income (wages, ordinary divs, ST cap gains) would be taxed at the 22% rate up to $82,500, not at 10%. Any additional funds for living would need to come from savings or non-taxable investment sources.
Or did I miss something?
Thanks again!
AIMStudent
