Reply to understanding the tax impact of the standard deduction

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][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]

This is pretty dumb. [/quote]

Why?  It minimizes taxes and encourages saving for retirement in the most tax advantaged way.[/quote]

OP didn't do an analysis that took into account when they plan to retire or what their post retirement income will be, so there's no way to conclude that they're either saving in the most tax advantaged way or minimizing taxes over their lifetime. And I doubt they're wealthy ebough to retire all that early. [/quote]

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