Honestly, I'm not sure. Check your own numbers. That 20% is on taxable
income, not AGI.

When you're retired and living on investments and pensions, your income is
what you choose it to be, but I've not played any games that way. I do
choose tax-free investments where possible and preferred things such as
dividend income funds, but then that's what the tax code is all about --
directing people's investments. If the government wants me to loan my money
to local school districts as opposed to corporations, it's OK if it's
profitable.

"Standard Deduction." No games there. I just put the numbers into TurboTax
and take what comes out as the number on my check.

I first noticed the low rate (as opposed to my perceptions) a few years ago.

Regarding the lost income by "withholding," I've been paying the
under-withheld penalty for most years recently. That's one that's worth
figuring out and adjusting.

Roger

http://home.earthlink.net/~derbyrm

"DSK" wrote in message
. ..
Brian, you're doing something wrong. 35% may be your incremental tax
rate, but with a similar income, my actual (paid) rate is below 15%
(state and fed). (divide "total tax" by AGI)


?? How do you manage that? The effective or actual tax rate for lower
incomes is still around 20%.