Talk of The Villages Florida - View Single Post - Taxes
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Old 10-02-2023, 10:14 PM
Gigi3000 Gigi3000 is offline
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Quote:
Originally Posted by OrangeBlossomBaby View Post
Unless you're very wealthy and keep all your OTHER money in cash or zero-interest bank accounts, you have other income. I'm assuming that $15,000 taxable income is - the income from the Vanguard accounts. Not your total income. I doubt Vanguard keeps track of any income you earn that isn't one of their accounts.

If you receive social security, then that's income. If you receive a pension, that's income. If you receive interest from the other 40% of the funds you say you have, then that's income. If you rented out a room in your house for a month, that's income.

ALL of that income is tallied when it's time to figure out how much (if anything) you owe to the IRS. You take whatever deductions you're eligible to take - either itemizing or the standard deduction. Whatever is left, you pay income tax on. The amount and percentage will depend on the difference.
My situation is quite simple. I have no other income currently. Haven't collected SS yet. I'm 64. Vanguard is it along with my small bank balance interest which might hit $8 this year. My expenses are minimal. I keep things simple or try to.