Hi and welcome to Just Answer!
There is no problem - I will re-evaluate your situation if needed.
Following are included into your adjusted gross income
social security income
- 85% taxable $28800*85%=$24480
--$20,000 withdrawal from Traditional IRA - taxable
--$116,000 represents the basis of the company stock from the 401K Plan - taxable
--$12,000 Rental Income - assuming that is NET rental income (after deductions
Total adjusted gross income - $176,800
Assuming Married Filing Jointly
, Standard deductions
, no dependents
, no other deductions or credits
. Assuming your spouse's income is also included above.
Your estimated tax liability would be ~$32,200.
Please be aware that to be eligible for the capital gain
treatment - the stock should be distributed and sold in the regular investment account - not in the IRA account.
If sold within the IRA account and distributed thereafter - the distributed amount will be treated as a regular retirement
Let me know if you need any help.