ItDontMeanAThing
Full time employment: Posting here.
I woke up this morning and realized that I hadn't thought about year end tax planning. My primary concern is starting a gradual ROTH conversion.
This is my first full tax year of retirement, so no income = no thinking about income tax. I think I know what to do, but I'm posting this in case someone spots something I missed. Also, I've been fortunate enough to have been paid well during my working years so I don't know squat about managing taxes at the bottom end of the income scale.
My financial situation:
Age 55. Living off taxable accounts which earned about $4200 in dividends and interest. Only 'income' was a $1650 federal tax refund.
Last year I had a long term capital loss stock sale. Applied the maximum (3000?) credit possible, have about $1500 that can be used in this year or the next.
I want to make a ROTH conversion that will have a fed tax liability of 1 to 2 thousand that will be paid out of a taxable account. I think I have to do it before the year end.
Without the conversion I expect to have zero taxes this year, what with the standard deduction exceeding my income. I figure I can play with a federal tax estimation calculator, adding in conversion amounts until I reach the desired tax amount. I'm an expat, Nevada was my last residence, so there will be no state tax.
What am I missing?
This is my first full tax year of retirement, so no income = no thinking about income tax. I think I know what to do, but I'm posting this in case someone spots something I missed. Also, I've been fortunate enough to have been paid well during my working years so I don't know squat about managing taxes at the bottom end of the income scale.
My financial situation:
Age 55. Living off taxable accounts which earned about $4200 in dividends and interest. Only 'income' was a $1650 federal tax refund.
Last year I had a long term capital loss stock sale. Applied the maximum (3000?) credit possible, have about $1500 that can be used in this year or the next.
I want to make a ROTH conversion that will have a fed tax liability of 1 to 2 thousand that will be paid out of a taxable account. I think I have to do it before the year end.
Without the conversion I expect to have zero taxes this year, what with the standard deduction exceeding my income. I figure I can play with a federal tax estimation calculator, adding in conversion amounts until I reach the desired tax amount. I'm an expat, Nevada was my last residence, so there will be no state tax.
What am I missing?