I draw 1535 per month from disability. I draw another 612 from my union disability fund. How much can I draw from my pension fund and not have to pay a large tax? How can I do a "what if" to find out what is the best amount to draw out per month?
I am single.
Thank you for your time
Try out scenarios on one of those free online tax prep programs such as taxact.
Are your disability payments taxable? If the premiums were paid by your employer, or paid by you through pre-tax income, then it is taxable.
Same questions for the union disability payments. If you deducted the union dues on schedule A, then I'm not sure if your disability payments are tax free.
Assuming all amounts are taxable, your AGI is (1535+612)*12%764. Don't forget to add interest, dividends, etc. And subtract deductions for IRA contributions, tuition, etc.
Your standard deduction is somewhere between 5350 to 7950, depending on whether you are over 65 or blind, and your exemption is 3400 or more if you have dependents.
Your taxable income is AGI minus deductions and exemptions.
For single filers, the 25% bracket starts at 31850. Below that is the
15% bracket.So you should probably try to keep your taxable income in the 15% zone.
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