Hello, I recently retired. If I have 20% federal taxes out of my monthly pension amount and whatever my state taxes are as well as 20% fed taxes out of my monthly retirement account allotment (and state) should that be safe at the end of the year? Or should I have more than 20% taken out? Thanks!
There are seven federal income tax rates in 2022: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. Using 20% for with holding may be adequate, but it depends on what your taxable income is. 20% should cover Single filers with income up to 89,075, Married Filing Jointly income up to 178,150 and Head of Household to 89,050, so it depends on your income. Below is a link with the tax brackets:
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