Sentences with phrase «couple is in a low tax bracket»

Not exact matches

It seems to favor those in higher tax brackets who have bigger mortgages, unlike our couple who was in a lower tax bracket and had a modest amount of mortgage interest.

I was wondering if it is a valid retirement strategy [after retiring] to withdraw the first couple lower tax brackets worth of income from the taxable traditional 401k thus taking advantage of lower rates, and then switching over to withdrawing from the tax - free Roth 401k for income that would normally be in the higher brackets and thus taxed at a higher rate.

Filing jointly usually puts you in a lower tax bracket than you'd be in if you filed individually; the standard deduction for a married couple is higher than if each goes it alone; you can usually make bigger IRA contributions if you file together.

And because Lacy is enrolled in a company pension plan, Feigs advises that when the couple do resume their savings plan in seven years that Lacy contribute solely to her TFSA because she's also in a low - income tax bracket.

Notably, because the 0 % long - term capital gains rate only applies until crossing the threshold of $ 73,800 taxable income (for married couples), the reality is that the opportunity for 0 % capital gains is inherently limited — as with other low tax brackets, it only applies until there's enough income to cross out of that bracket, and any additional income falls in the next higher bracket.

The marriage penalty was «fixed» for couples in the lower brackets and slightly mitigated for the mid-level brackets, at least until 2013 when some of the «Bush tax cuts» expired.

For couples in different tax brackets, pension income splitting allows some of their RRIF income to be taxed in the hands of the lower - earning spouse.

Converting the entire account may drive the couple's marginal tax rate into the top 39.6 % bracket, which is so high that they probably would have been better off just leaving the money as a pre-tax IRA and spending it in the future at a lower rate!

Under the old tax law, because the spouse receiving alimony or spousal maintenance is usually in a lower tax bracket after a divorce, more money stays with the divorcing couple rather than going to the Federal Government.