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Is there any strategy that a person with $162,000 of total income ($60,312 pension and IRA dist., $$36,672 taxable SS), that might save some of the $21,901 total tax.

randyhinds
Level 1
Retirement contributions and Social Security classification got the taxpayer in this mess.
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abctax55
Level 15

Tax rate of 13.5%...

Doesn't sound like that much of a 'mess'  to me.

And I don't understand your comment, at all.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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randyhinds
Level 1

I say mess because the client did not understand the consequences of his actions. He has already paid over $13,000 in taxes, and tax avoidance is an objective of mine, regardless of the tax rate. I am not jealous of high income individuals like this person, just trying to do my best for him. 

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abctax55
Level 15

No one, except you, said anything about jealousy. 

Your OP said $ 21000 'total' tax.  What one has already paid in (or not) isn't relative to the overall rate.

Your inference that I don't also do what I can to minimized my clients tax rate is unnecessary.

Thanks for clarifying what you meant by "mess".   Clients that don't seek advice in advance don't get much of my sympathy.  Nor do ones in such a low bracket.  

 

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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IRonMaN
Level 15

That's kinda like going down to the morgue, pulling a guy out of the cooler and then calling a doctor to see if the doctor can help.  At this point, all he can do is pay the tax.

Armpit sniffer. Yup, checked out the help wanted ads and found the job. With my nose, how can I go wrong?
PATAX
Level 9

Iron Man, you hit the coffin nail on the head...

IRonMaN
Level 15

I carry my ACME hammer wherever I go. 🔨

Armpit sniffer. Yup, checked out the help wanted ads and found the job. With my nose, how can I go wrong?
rbynaker
Level 11

Normally there's nothing to do after the fact but Congress was handing out DeLoreans this year to eligible individuals.  If the retirement stuff was COVID related they can spread it over 3 years or pay it back.

 

BobKamman
Level 13

Brazil

qbteachmt
Level 15

"and IRA dist"

Give it Back.

*******************************
"Level Up" is a gaming function, not a real life function.
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BobKamman
Level 13

What do you mean by "SS classification" ?  Even with zero pension and IRA income, 85% of his Social Security would be taxable.  Are you trying to do retirement planning for him, not just tax planning?  Sure, he might have been able to wait to start collecting Social Security.  And he might have been hit by a truck tomorrow.  Or he might live in Texas and froze to death after contracting Covid.  When my clients ask me when they should start collecting Social Security, I first ask them for their date of death.