would you mind posting the actual numbers you are plugging in and what the result is on line 7 of the worksheet.
If you add $10,000 to the 1099R, how much does line 7 go up? Should be the same $10,000......unless......
I wonder if what is occurring has to do with social security. Remember that
- up to 50 percent of your benefits if your income is $25,000 to $34,000 for an individual or $32,000 to $44,000 for a married couple filing jointly.
- up to 85 percent of your benefits if your income is more than $34,000 (individual) or $44,000 (couple).
So i if you added $10,000 on a 1099-R you would expect federal taxes to go up by $1200 if you were in the 12% tax bracket. But it is possible that it bumps up to 85% of your social security into the taxable category, so a $10,000 addition on the 1099-R could add up to $18500 of taxable income and in a 12% tax bracket,could add up to $2,220 of additional tax or 22% percent tax on a $10,000 rollover!!!!!!
Line 7 really should work...... I do it all the time to determine what tax bracket I am in and how much to rollover to my Roth.
