I realize that the answer is "do the math lazy boy", but Turbo Tax is missing parts until 12/21 and I am itching to figure things out now.
My situation is that I get $7500 and $500 tax credits from my Tesla and Wall Connector installation. To use up all of that it seems I need an AGI of about $80,000.
My state is phasing in an IRA exemption so if my AGI is $75,000 or less I can avoid paying state tax on 25% of my ROTH conversion. Right now my conversion is $54,000 so that is about $675 state tax versus not getting $500 or so federal credit.
I was hoping that I would find myself already over AGI $75,000 so I would not have to worry what to do, but it seems I am under by a couple thousand not accounting for small accounts and some fund DIVs.
If I go over $75,000 I think I should convert up to the AGI that would set me up for an IRMAA hit in two years. That seems to be $105,000 or $100,000 playing it safe.
I know that the general consensus is to convert up to the top of the 12% rate. But I am already into the 22% rate and expect to be in that or the next tier later on.
The concept that I have not seen discussed much is how much weight to give to the idea that converting stocks that I like to think will really grow fast might be a good idea even if it is at the higher current rate. That is, if my TSLA goes to the moon after robo-taxi and robots, it would be best in the ROTH
So, if I end up able to stay under the $75,000 AGI, do you think I should convert up to $100,000 AGI anyway thinking that the gamble on high growth stocks and not having to put out much this year due to tax credits makes sense?
My situation is that I get $7500 and $500 tax credits from my Tesla and Wall Connector installation. To use up all of that it seems I need an AGI of about $80,000.
My state is phasing in an IRA exemption so if my AGI is $75,000 or less I can avoid paying state tax on 25% of my ROTH conversion. Right now my conversion is $54,000 so that is about $675 state tax versus not getting $500 or so federal credit.
I was hoping that I would find myself already over AGI $75,000 so I would not have to worry what to do, but it seems I am under by a couple thousand not accounting for small accounts and some fund DIVs.
If I go over $75,000 I think I should convert up to the AGI that would set me up for an IRMAA hit in two years. That seems to be $105,000 or $100,000 playing it safe.
I know that the general consensus is to convert up to the top of the 12% rate. But I am already into the 22% rate and expect to be in that or the next tier later on.
The concept that I have not seen discussed much is how much weight to give to the idea that converting stocks that I like to think will really grow fast might be a good idea even if it is at the higher current rate. That is, if my TSLA goes to the moon after robo-taxi and robots, it would be best in the ROTH
So, if I end up able to stay under the $75,000 AGI, do you think I should convert up to $100,000 AGI anyway thinking that the gamble on high growth stocks and not having to put out much this year due to tax credits makes sense?