The new tax bill, TCJA, is a HUGE opportunity for married couples to start planning, especially if you’re over 65.
In this episode I discuss how using your increased in Standard Deductions and paying just a bit more tax today can save you HUGE taxes in the future.
Remember, a single taxpayer, i.e. a widow, only has half the Standard Deduction as a married couple. This may not seem a big deal, but it is. The single taxpayer will now be faced with higher taxable income, at a higher tax rate, as well as higher taxation on Social Security, PLUS, potential for huge premium increases on Medicare B and D.
Don’t let this be you. Start slowly moving money over to a Roth IRA, at the minimum up to the maximum of your current tax bracket.
Married with taxable income of $50k means you have $27k before you hit the next bracket of 22%. Pay 12% tax on that $27k today to save huge amounts in the future.
Song of the day is Jake Hamilton and the Sounds – Wade In The Water