4K tax break for me...I'll take it!
I wonder if it's 8K since the wife is on SS too?
If she is over 65 the answer is yes. If not, the answer is no. You get a $6,000 deduction from income. Show me how reducing your income by six grand results in a savings of four grand.
First, let's assume you are paying taxes on your Social Security benefits, that means your combined income exceeds $32,000 per year. Combined income is your adjusted gross income, tax-exempt interest income, and half of your Social Security income. You got a $30,000 standard deduction to reduce your gross income. I mean you got to be in the 12% tax bracket, that would be up to a joint income of right at $97,000. To save four grand you would have to reduce your combined income by over thirty thousand dollars. How does a six thousand dollar deduction, from your adjusted gross income, not your combined income--you still ,have to count half your Social Security, add up to a four thousand dollar tax break?
Obviously, you have income other than Social Security, I just don't think you are going to see that four thousand dollar savings. Take your last years tax return, take an additional six grand, or twelve grand, off your adjusted gross income, add half of your and your wife's Social Security benefits, and if the total falls under $32,000, you don't pay taxes on Social Security income. Is that the case, and do you draw thirty thousand in Social Security income but less than $47,000 in additional income?
Like I said, I don't think the numbers are going to pan out for you. The real question is, will that even matter to you or will you be bending over and saying, "Thank you sir, I will have another".