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Jeff, excellent analysis. But you forgot to include (maybe you aren't aware of since you don't prepare your own taxes) the additional tax on investment income.
A 3.8% Net Investment Income Tax (NIIT) applies to individuals, estates, and trusts with high income, specifically targeting net investment income when modified adjusted gross income (MAGI) exceeds $200,000 (single) or $250,000 (married filing jointly). It applies to the lesser of net investment income or the amount by which MAGI exceeds the threshold. The 3.8% tax applies to interest, dividends, capital gains, rental/royalty income, and non-qualified passive business income. The NIIT doesn't apply to earned income.
Also add in IRMAA, the surcharge on Medicare premiums.
Wendy
