I too did my tax planning in Mid December 2022 and I believe there was an error in the TurboTax program at that time but I cannot prove it.
I entered all my data in Dec and it showed that I was in the 10% bracket almost in the 12%. I figure that 12% might be a reasonable rate to make a Roth conversion(Taxes should be increasing). I incrementally increased my 1099R numbers until it was showing I was close to the 22% bracket. I would increment say $1000 and TurboTax would show $120 tax. So when it showed more tax I know I hit the 22% bracket. This technique showed that I could make about a $30,000 conversion and pay increased taxes of about $3300. Which seemed reasonable.
Last week I started my taxes and just started a new tax return as I estimated a few things on my December planning and did not want to get some numbers confused. To my surprise the $30,000 increased my taxes by about $9000. $9000/$30000 = about 30% tax rate!! So I thought I entered something wrong but could not find anything. I pulled up my December data file and the current program shows about $9000 not the about $3300 it did in December. While I would like to just undo the conversion(recharacterization), this does not seem possible because of 2017-2018 tax law changes. Does anyone have any suggestions? I would not have made the conversion if I had gotten the correction information.
