Tax law changes

Retirees should monitor their tax bracket. When you have withdrawals, always fill up the bracket. (e.g. if your taxable income is $60,000 but the MFJ bracket is $83,550. You can make additional withdrawals of $23,550 to fill up the bracket and not go into a higher tax bracket.)

You could total all income which is taxable, subtract your standard or itemized deductions and then calculate your tax. This is very simplistic. Your particular circumstances will alter this simple calculation. Always be conscious of your tax bracket in making withdrawals.

Here are the rates from 2022 and proposed for 2023:

Projected 2023 Tax Rate Bracket Income Ranges

• 10% – $0 to $11,000.
• 12% – $11,000 to $44,725.
• 22% – $44,725 to $95,375.
• 24% – $95,375 to $182,100.
• 32% – $182,100 to $231,250.
• 35% – $231,250 to $578,125.
• 37% – $578,125 or more.