Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 699
FIL had $6,000 taxable income last year, paid $600 in tax. This year expected to be about same income/deductions.
Wanted to see impact if did $10,000 Roth conversion - so I took 2015 TT file and increased distributions by $10,000
The tax went up roughly an additional $2,500. I was expecting only $1,500 increase in tax (15% tax bracket).
Looking more closely - because of the higher income, an additional $6,000 of SS became taxable.
So with additional $2,500 tax due on $10,000 added Roth conversion - this does not make sense to do - right ?
Thanks !!!
Wanted to see impact if did $10,000 Roth conversion - so I took 2015 TT file and increased distributions by $10,000
The tax went up roughly an additional $2,500. I was expecting only $1,500 increase in tax (15% tax bracket).
Looking more closely - because of the higher income, an additional $6,000 of SS became taxable.
So with additional $2,500 tax due on $10,000 added Roth conversion - this does not make sense to do - right ?
Thanks !!!