Oops but OK!Just filed my 2019 taxes. My company pension gave us a year end $250 bonus. I planned my taxes this year with only a $106 buffer for my personal sweet spot. I paid a marginal tax of 22.2% on the first $106 of my bonus and 40.7% on the remaining $144 for an overall marginal rate of about 33%. It would have been much worse if I didn’t know about the sweet spot. I’ll keep a larger buffer zone in 2020. MAGIThanks for the info on MAGI. I’m over 62 and not on Social Security yet. Now I know that I have to keep an eye on MAGI as I do my Roth Conversions while I prepare for my sweet spot! |
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