Basic tax question.

[JOhnH]

If my wife and I draw $60k/year Social Security (total, before taxes and Medicare), and we begin withdrawing another $60k from an IRA, how much Federal tax can we expect to owe?
Just two of us and standard deductions.
The rest of my funds would be non-taxable.

 

[murphey]

IRS website has lots of info. The first $x dollars of SS are taxable based on overall income. It’s a moving target. You can use the online IRS tax estimator at the irs.gov to get a rough idea.

 

[MooneyDriver78]

$120,000 (assuming SSI is 100% taxable)
$25,900 - (standard deduction for married jointly)
---------
$94,100
$83,550 -
---------
$10,550
0.22 x (marginal tax rate above 83,550)
---------
$2,321
$9,615 + (base amount)
--------
$11,936 (total tax burden)

someone can check my math.

https://www.morganstanley.com/content/dam/msdotcom/en/themes/tax/2022-federal-tax-tables-final.pdf

It's also going to depend on the type of income that other $60K from the IRA is. (qualified, non-qualified, dividends, interest, etc...)

IRA withdrawals are normal income: qualified, dividends, etc don’t matter.

85% of SS for him will be taxable.

 

[Bob Noel]

$60,000
$51,000 (85% of social security)

$111,000

standard deduction for 2021 is (according to the 1040 form) $25,100

$85,900 AGI (or whatever it's called)

tax from table: $10,401


edit: IANAL nor an accountant nor a tax preparer, etc, etc, etc

 

[Mikey B]

If OP is on Medicare, I assume over 65, so standard deduction for married filing jointly for 2022 will be $27,300 ($1,400 bonus for over 65).

Concur that the IRA withdrawals are treated as ordinary income, unless it's a Roth IRA, or some contributions were after-tax.