IRA Distribution in Retirement no tax filing.

[inquisitive]

I am retired and will be turning 70 this year. I have not filed taxes in a few years because i currently live on social security plus bond distributions (under $10k distribution a year).

My questions is, for 2019, i will be living solely on social security and a small IRA I have (no more bonds). How much can i withdraw before having to file/pay taxes? As mentioned, i haven't filed in years and don't wish to. What is the max distribution annually I can take before i would need to do this?

Thank you!

[SweetieJean]

Keep in mind the IRA RMD fomula:
 <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf">https://www.irs.gov/pub/irs-tege/uniform_rmd...>

[fanfare]

What matters is whether you are turning 70 1/2 this year, not 70.

[fanfare]

you don't get to do that. That's why they call it Required Minimum distribution.

Your custodian will do the calculation for you if you can't do it.

[SweetieJean]

and remember state taxes as well.

[inquisitive]

Thanks SweetieJean... that's not my question. I know what the Required MINIMUM Distribution is...my question is what is the max i can withdraw before i'm required to file taxes. RMD only say what i have to take out at a MINIMUM. There isn't a max... I'm tax planning, not compliance planning.

[fanfare]

when your adjusted gross income (including 85% of your SS benefits) exceeds your standard deduction, you can start to worry. Standard deduction for a single person like you will be $13,600.

[inquisitive]

Thanks FanFare!

[SweetieJean]

If you are Single, your 2018 Standard Deduction is $13,300.  Also see:
<a rel="nofollow" target="_blank" href="https://www.ssa.gov/planners/taxes.html">https://www.ssa.gov/planners/taxes.html</a>

[macuser_22]

How much taxable income you can have before you are required to file a tax return depends on your marital status and age.

See Pub 17 Table 1-1 on page 5 for filing requirements.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p17.pdf">https://www.irs.gov/pub/irs-pdf/p17.pdf</a>

[SweetieJean]

That's for 2017. OP is asking about 2018.

[inquisitive]

I am single, retired with no employment, I live on social security, and IRA distribution which I'll begin to take in 2019. I'll be age 70 at the end of 2018, age 71 at the end of 2019. I need to take a distribution in January of 2019 as i need the funds for my living expenses so I'm trying to figure out now what I can take out without having to pay taxes and/or file a return.

I seem to recall reading that these were two different things... there's an amount (i think it was $11,000 in IRA distribution) i can withdraw tax-free before i need to file a return. I thought there was a different, greater amount i can take out that requires a return, but will end with no tax liability. I'm looking for what these two limits are. Thank you.

[fanfare]

Again, what matters is the year you turn 70 1/2, not 70.
Filing a return, you can do by hand, especially if there is no tax due. It is a simple thing. depending on the total value of your IRA, your RMD can kick you into taxable income. There's nothing you can do about that.

[fanfare]

Whatever income you got from bonds without tax, you can take from an IRA. It will be more than that going forward because the standard deduction is increasing.

[fanfare]

For a single person, the first divisor is 27.4 or 26.5 . So there you go. Divide your IRA value by 26.5.
If your IRA does not drop in value, you will be taking about that much income when you start distributions.