Description John and Judy are in the 12% tax bracket.
Why? Wh.
And they both have $80k in total income.
Yet when Jane did the same it cost her nothing.
Why? When John died Judy\'s income went down by 33% but her taxes went UP Why? Isn\'t interest on municipal bonds tax free? Then why did it cause John and Judy\'s taxes to increase? When Judy took out $20k to take her daughter on a cruise it cost her $9,908 in taxes.
But when they took $10k from their IRA they had a 50% tax increase.
Description John and Judy are in the 12% tax bracket