Hi all,
MDM has been very helpful, but, I want to spare him from any more of my novice questions.
I'm doing tax planning, We are retired. I can adjust the amounts in each category of assets I liquidate before the end of the year. (LTCGs or tIRA)
I want to take LTCGs at 0% and do Roth conversions at 10%.
Here are the numbers to enter.
Line 25D- Qualified Dividends $6,500
Line 27D- LTCGs $70,000
Line 31D- tIRA Distributions $37,700
Line 45D- HSA $8100
Line 2G - MFJ =2
Line 8G- Adult#1 65
Line 8H- Adult #2 61
Line 17G- 1040 Tax $350
With these numbers, it seems that any additional $100 increase in LTCGs results in a $15 additional tax and $100 increase in tIRA Distributions results in $25 additional tax. While decreasing LTCGs $100, results in no change in the tax due, and decreasing tIRA distributions $100, results in a $10 decrease in tax due.
First, do you agree with my conclusion?
Second, Is there any way to take more Roth conversions, at 10% tax?
Third, Is there any reason to take more LTCGs, since next year I can take them at 0%?
Thank you very much to anyone that verifies my data.
