Next year's tax software comes out late in the year, but sometimes our state software isn't released until after the new year. This won't provide us information soon enough since tax maneuvering / bunching needs to be completed before the end of the year.
This is how the 2016 Schedule A, Line 3 instructions read:
In planning a work-around for our model, I thought I might change our dates of birth in the tax software basic informaton to make it calculate as if we are still under age 65, thus forcing the 10% calculation (2017 rule) on our model. However, doing so would also reduce our standard deduction to the under-age-65 rules. Those over 65 are supposed to get an extra $1250 per person for their standard deductions. That's an additional $2500 for MFJ, which may be easy enough to adjust for after our model is complete.Multiply line 2 by 10% (0.10). But if either you or your spouse was born before January 2, 1952, multiply line 2 by 7.5% (0.075) instead.
If I change our dates of birth so as to require the 10% calculation, then I would add $2500 to our standard deduction and compare that to the total of itemized deductions on Schedule A. Are there any problems with this? Any alternative suggestions? Thank you.