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JAFO31 writes "I could not find any explanation of the 6-figure income in the article."

"There's this.

And that's the heart of the Wrights' zero tax bill. A couple who lived on 60 percent of the income the Wrights did last year, but who were relying on a $30,000 pension, $30,000 in Social Security and $10,000 in distributions from an IRA, using the standard deduction, would owe more than $7,000 in taxes.

</snip>

So $70,000/yr is equal to 60% of Wright's income. It looks like they earned about $117,000 in 2013."


But how did the Wright's get their income up that high without paying taxes? The only income lsited for the Wrights was the roughly 84k I previously referenced. Upon re-reding< i found this:

"Wright also worked as a tax preparer, but that was less than 3 percent of the couple's annual income."

so somehwere under $4k.

From where did the other nearly $29k (117 - 84 - 4) in income arise? Muni or other tax free bond holdings?

"If a couple has less than $72,000 in taxable income, they pay no taxes on dividends or capital gains."

"Taxable income is generally described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments that are allowable in that tax year."

http://www.investopedia.com/terms/t/taxableincome.asp

"Taxable income is adjusted gross income less personal exemptions and itemized deductions" or [standard deduction].

Itemized deductions circa (1997ish) fit seven main classes:
--Medical and Dental Expenses Deduction
--Taxes Paid Deduction
--Interest Paid Deduction
--Contributions Deduction
--Moving Expense Deduction
--Net Miscellaneous Deductions after Limitation
--Other Miscellaneous Deductions

Even with big deductions, from where did the other income come?

Regards, JAFO
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