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To: springwater13
The standard deduction goes up to $24k. That’s a lot of deductions for people to even hit to itemize.

Yep. But for a retired couple in several states, it's possible to have a higher reduction of taxable income under the current tax system, particularly for couples with moderate taxable income (say $75k or less).

If one or both of the spouses are under 65 and the couple doesn't qualify for Obamacare subsidies (which is quite easy to have too much income), the Gold plan premiums are in excess of $900/mo per person. Even the cheapest Bronze plans are in the mid-600s and higher. Medicare plus supplemental plus Plan D adds a few more hundred per month.

Under such a scenario, a lot of the monthly premiums will be in excess of the AGI threshold for medical deductions. Add that to a couple living in a high property tax state, plus the $4,100 exemption/person, plus $1,500/person aged 65 or older, and it's not that difficult to far exceed $24k in income deductions. Don't forget charitable contributions, any state/sales taxes, and/or mortgage interest (if still paying off a loan in retirement).

73 posted on 12/18/2017 12:28:02 AM PST by CatOwner
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To: CatOwner
which is quite easy to have too much income

Well, there went that narrative (work ethic).*

Just kidding (sort of), but you have to keep in mind that you are in a small minority. And hopefully an improved economy will increase your chances to make more money.

*Actually, working hard and making good decisions is no guarantee of success, as I have learned to my dismay. I still believe it increases the odds of success, tho', and helps to keep one out of the economic gutter.

Of course, then there's always the question of what is a good decision. Does one stay near "home" to insure someone (themselves) will be there for their parents in their old age, and forgo many opportunities and much income, or go where the grass is seemingly greener?

80 posted on 12/18/2017 11:20:47 AM PST by Paul R. (I don't want to be energy free, we want to be energy dominant in terms of the world. -D. Trump)
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