Assuming you are married filing jointly, here's how you'd figure out your Federal MARGINAL tax rate in 2008, or the tax rate you payed on the last dollar of income:
Gross Income (distributions from retirement plans, TIRA's and taxable accts), PLUS
85% of your household Social Security retirement benefits, MINUS
greater of $10,900 (standard deduction) or your itemized deductions, MINUS
$7,000 for personal exemptions, assuming its only you and your wife
This will give you, for 2008, your TAXABLE INCOME.
Your FEDERAL TAX will on this amount is determined (for 2008) as follows:
10% of the first $16,050 PLUS
15% of the amount between $16,050 and $65,100
This assumes you don't have any 'above the line' deductions on the front of your form 1040 (most retirees don't)
As to your CA tax, either you'll have to Google to a web site that will start with your Fed 1040 numbers to figure the tax or perhaps another poster can speak to this, as for most States, its not as easy as mulitplying your Fed Taxable income X State tax rate.
BruceM
