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!
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_wksht.pdf</a>
What matters is whether you are turning 70 1/2 this year, not 70.
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.
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.
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.
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>
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>
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.
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.
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.