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Chukks
Level 1

WHAT IS TAXES ON $87,500, COMBINED INCOME AFTER RETIREMENT.

I am 66 years old. I will be making $875000 a year for my retirement, this includes my Social Security benefits. How much will be my overall IRS Federal Taxes?

1 Best answer

Accepted Solutions
SteamTrain
Level 15

WHAT IS TAXES ON $87,500, COMBINED INCOME AFTER RETIREMENT.

I took a shot using 2020 software

 

1. Assuming you are Single.

2.  $24,000 is SS

3)  $63,500 is pensions/IRA/401k  distributions (none are ROTH distributions nor have any after-tax contributions)

4) Std Deduction of $14,050   (will be slightly higher for 2021)

5) The extra cash charity income deduction of $300

6) Zero other income...meaning no Cap Gains and no interest or dividends of any kind.

 

Fed taxes would total right at ~$11,100

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

View solution in original post

3 Replies
fanfare
Level 15

WHAT IS TAXES ON $87,500, COMBINED INCOME AFTER RETIREMENT.

Do a trial 2021 tax return using TurboTax 2020 Deluxe CD/Download program.

It will be close enough.

 

If you are an Online user, you need to set up a second throwaway account.

There is no charge since you won't be submitting it.

Critter-3
Level 15

WHAT IS TAXES ON $87,500, COMBINED INCOME AFTER RETIREMENT.

Have you tried using the IRS withholding estimation tool:

 

https://www.irs.gov/individuals/tax-withholding-estimator

 

Or have you tried using TurboTax's Tax caster tool:

 

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

 

SteamTrain
Level 15

WHAT IS TAXES ON $87,500, COMBINED INCOME AFTER RETIREMENT.

I took a shot using 2020 software

 

1. Assuming you are Single.

2.  $24,000 is SS

3)  $63,500 is pensions/IRA/401k  distributions (none are ROTH distributions nor have any after-tax contributions)

4) Std Deduction of $14,050   (will be slightly higher for 2021)

5) The extra cash charity income deduction of $300

6) Zero other income...meaning no Cap Gains and no interest or dividends of any kind.

 

Fed taxes would total right at ~$11,100

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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