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Converting money from your IRA to your ROTH IRA will be taxed at your current tax rate - so the answer depends on your filing status and what your income is BEFORE considering moving money from a pre-tax to an after tax ROTH account.
For example, if you are single and your taxable income was $50,000, you are in the 22% tax bracket, and the next $1 of income would be taxed at 22%. In that situation, moving $10,000 would generate federal taxes of $2,200. However, if you were married and filing a joint return and the joint taxable income was $50,000, then you would be in the 12% tax bracket, and the next $1 of income would be taxed at 12%, so moving $10,000 would generate only an incremental $1,200 tax bill.
You also have to look at when adding income would move you into a higher tax bracket. Let's take the example of you being married and filing a joint return, and your taxable income for the year before moving the retirement money was $50,000, or the 12% tax bracket. Once your taxable income goes over $89,450, that amount over $89,450 will be taxed at 22%. So, in this example, if you were going to move $50,000 between the retirement accounts, the first $39,450 would be taxed at a 12% rate, then the next $10,550 would be taxed at a 22% tax rate.
You would have to look at the tax brackets for your filing status to determine the exact dollar amount that would generate $7,500 of incremental taxes. And while you are doing that, keep in mind that there are income limitations to qualify for the $7500 tax credit, so converting money from a pre-tax to an after-tax retirement account may raise your income to a level where you are no longer eligible for the tax credit.
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