Each retiree’s situation is different in this regard, but one threshold that creates a big advantage for strategic management is the divide between the 12 percent and 22 percent tax bracket. That reflects the biggest jump in tax rates, and in 2021 the taxable income levels where this shift happens are $40,525 for singles and $81,050 for joint filers. These thresholds are also quite close to where the tax rate for long-term capital gains and qualified dividends jumps from 0 percent to 15 percent. For singles this happens at $40,400 of taxable income and for married couples filing jointly it is
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