Ility quadruples.Pension income, I have taxes taken out (about 10%) as soon as I enter my wifes pension (she also has 10% taken out) my tax liab

[dpendl]

Our total income is under 100000 until I add my wife's retirement. Have we hit some magic ceiling or bracket

[MichaelL1 · Accepted solution]

With $100K of income, filing Married Filing Joint, you are in at least the 25% tax bracket.

So if you add $10K of pension, the income tax on that additional income is $2,500.  If this is an early withdrawal (under age 59 1/2) with no exceptions there is an additional 10% penalty, so now the total penalty and income tax are $3,500 less the 10% withheld.

Tax brackets for Married Filing Joint is based on Taxable income.

This link will help with the tax bracket you are in:  https://www.irs.com/articles/2016-federal-tax-rates-personal-exemptions-and-standard-deductions