So let’s kick off 2024 with New Year’s resolutions that lower your tax bill and boost what you keep. AGI measures a filer’s income before Schedule A itemized deductions and tax credits, so it’s typically larger than taxable income on Line 15. So most married couples who have more than $228,000 of AGI for 2023 can’t make Roth IRA contributions. While it’s true the states can’t tax income from federal obligations, this exemption is for Treasurys, savings bonds, and bonds from some agencies but not others. Joint filing often results in lower taxes, so the year of death can be a prime time to accelerate income, such as from a Roth IRA conversion.

Source: Wall Street Journal January 02, 2024 13:13 UTC