Reply to understanding the tax impact of the standard deduction

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If we are married filing jointly, I see that we are typically in the 22% marginal tax rate.  For 2024 22% starts for income above $94,300.  But we typically have the standard deduction.  For 2024 it's $29,200.

So, does this mean we are only taxed 22% for income above $123,500?

I am thinking to do our best to stay under $123,500 in federal taxable income if this is the case.

Thanks for any feedback.[/quote]

Essentially. The marginal tax rate of 22% kicks in for TAXABLE income above $94,300.

Another way to think of it is there is a zero tax rate on your first $29,200 of adjusted gross income. Then the next 70K or so is taxed at 12%. Then the 22% rate kicks in for the next $100k or so. And then the 24% rate. And so on. [/quote]

Op here.  Thanks.

We are thinking put enough into 403b and/or 457b to get us right below $123,500 federal taxable.  Then focus on Roth IRA's.  That way any money going into the Roth is taxed at 12% first.[/quote]

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