Last-Chance Moves for Retirees to Cut Their 2016 Tax Bill

Take these steps before the end of the year to lessen your chances of getting hit hard on your next tax return.

(Image credit: Aleksandr Kalugin)

Zero. Zip. Zilch. Zippo. Imagine locking in a 0% tax rate for your own investment profits. And that sweetest-of-all rates is available for the long-term capital gains—those from investments held more than a year—of taxpayers who fall in the 10% or 15% tax bracket.

Since the 15% bracket rises as high as $75,300 on joint returns, a married couple with typical deductions could have $100,000 or more of income and still qualify for the 0% rate.

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Kevin McCormally
Chief Content Officer, Kiplinger Washington Editors
McCormally retired in 2018 after more than 40 years at Kiplinger. He joined Kiplinger in 1977 as a reporter specializing in taxes, retirement, credit and other personal finance issues. He is the author and editor of many books, helped develop and improve popular tax-preparation software programs, and has written and appeared in several educational videos. In 2005, he was named Editorial Director of The Kiplinger Washington Editors, responsible for overseeing all of our publications and Web site. At the time, Editor in Chief Knight Kiplinger called McCormally "the watchdog of editorial quality, integrity and fairness in all that we do." In 2015, Kevin was named Chief Content Officer and Senior Vice President.