Accepted Answer

Hello again brownie,

Yes, I agree that filing as married would be your best option. I just needed to clarify that your husband did just pass away this year, and not in an earlier year.

Here are the tax brackets for 2009 if you will be filing a married joint return:

• 10% on the income between $0 and $16,700
  
• 15% on the income between $16,700 and $67,900; plus $1,670
  
• 25% on the income between $67,900 and $137,050; plus $9,350
  
• 28% on the income between $137,050 and $208,850; plus $26,637.50
  
• 33% on the income between $208,850 and $372,950; plus $46,741.50
  
• 35% on the income over $372,950; plus $100,894.50

You can see from this list where the income breaks are -- any taxable income up to $67,900 keeps you in the 15% bracket. Once your income exceeds $67,900 it jumps to the 25% bracket. And then once it exeeds $137,050 it jumps to 28%.

Hopefully this will help you make the decision on how to take your distributions, but if you need more information, please let me know.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you brownie and let me know if you have more questions. I am happy to help you with whatever I can.

Expert:	Merlo
Pos. Feedback:	99.8 %
Accepts:
Answered:	10/1/2009

Accountant

25+ years tax consulting. Specializing in returns for US citizens living abroad