- Joined
- Nov 27, 2014
- Messages
- 9,311
I just entered my taxes into TT. I realized that I was way off on my estimated taxes - bigger refund than expected. Ugh, what happened? Well, this was my first year with SS. Me and DW both started SS in 2023. In my tax planning, I assumed all of the SS would be taxable. Realistically, I knew the limit was 85% but to be safe, I assumed 100%. Well, it ended up being closer to 50%. I'll definitely have to understand that calculation much better going forward.
Had I realized where I was, I would have done a Roth conversion of about $30K. Not a lot but anytime I can get $30K out of my IRA under the 12% bracket, I want to do that. Given that I took a distribution from my IRA in 2023 of $20K (to replenish my cash from buying iBonds), I should be able to do a Roth conversion in each of the coming years of about $50K.
Live and learn - an expensive way to do business. I should have studied the SS form better instead of just assuming that 85% of it would be taxed.
Had I realized where I was, I would have done a Roth conversion of about $30K. Not a lot but anytime I can get $30K out of my IRA under the 12% bracket, I want to do that. Given that I took a distribution from my IRA in 2023 of $20K (to replenish my cash from buying iBonds), I should be able to do a Roth conversion in each of the coming years of about $50K.
Live and learn - an expensive way to do business. I should have studied the SS form better instead of just assuming that 85% of it would be taxed.