Badger
Thinks s/he gets paid by the post
- Joined
- Nov 2, 2008
- Messages
- 3,410
This past year I didn't know how to plan for estimating my taxes and paid a lump sum to the IRS in October that turned out to be way to much. It was nice getting some of my money back but I would rather not repeat the same mistake again. I finally downloaded my free tax program from Vanguard and started playing "what if" for 2014.
I would like to convert $20k tIRA money to a Roth and stay within a 15% tax bracket if going to a higher tax bracket increases the Capital Gains and Dividends tax. The TT program says this will make the Adjusted Gross Income a little over $100k but my Taxable Income a little over $78k. If AGI is used then I go to a higher tax but if Taxable Income is used then I should be good. Which number is used?
In a few years when we will reach 70.5 I will have to cash in some IRA money that will put us into a 25% bracket anyway but I was hoping to save a couple of dollars in the meantime.
Cheers!
I would like to convert $20k tIRA money to a Roth and stay within a 15% tax bracket if going to a higher tax bracket increases the Capital Gains and Dividends tax. The TT program says this will make the Adjusted Gross Income a little over $100k but my Taxable Income a little over $78k. If AGI is used then I go to a higher tax but if Taxable Income is used then I should be good. Which number is used?
In a few years when we will reach 70.5 I will have to cash in some IRA money that will put us into a 25% bracket anyway but I was hoping to save a couple of dollars in the meantime.
Cheers!