We are a retired couple (71 and 75) in the U.S. and we would like to do a voluntary IRA distribution so that we are maximizing the 15% tax bracket. In other words, we want to increase our taxable income to $75k for the year.
Our income so far is:
- $15k in wages
- $9k pension
- $37k combined Social Security
- $7k in combined minimum required distributions for two IRAs
My understanding is that 85% of our Social Security income is taxable, so I am calculating our AGI so far as:
$50k AGI = $15k (wages) + $9k (pension) + $31k (85% of SS) + $7k (IRA MRDs) - $12k (standard deduction)
Thus, it looks like we can do an additional $25k IRA distribution to make out the 15% tax bracket.
Have we overlooked anything in doing this calculation?