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The taxable amount of SS has not changed.    Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches: Married Filing Jointly: $32,000 Single or head of household: $25,000 Married Filing Separately: 0   But there is a new Enhanced Deduction for Seniors of $6,000 for each spouse 65 or older if you qualify. The income limit is 75,000 (150,000 Joint). That is listed separately on your return and is in addition to the Standard Deduction or your Itemized Deductions and is after any Social Security taxable amount on line 6b. The deduction for seniors will be allowed for 4 years, from 2025 through 2028.  It will be on new 1040 Schedule 1-A   I just made an Excel spreadsheet to calculate the deduction         How much is your Total Income?    

TurboTax does not have a tool for multi-year Roth conversion planning. TurboTax is designed to prepare and report taxes on a year-by-year basis.  TurboTax can accurately process a Roth conversion for a specific tax year, it does not have the modeling capabilities necessary to strategically plan conversions over the entire "retirement valley."  TurboTax is designed to report on the conversion after it occurs, not projecting and creating the best strategy for the future.     Many brokerage firms also offer free online calculators to help model the tax impact of a Roth conversion based on different scenarios.  I would check with your financial institution to see what Roth Conversion Calculator they may have available.    Some things to keep in mind when you do use a calculator to help plan for multi-year conversion:   Tax brackets: By spreading out conversions over several low-income years, you can fill up your lower tax brackets (e.g., the 12% or 22% brackets) and avoid pushing yourself into a higher one. Medicare premiums: Higher income from a Roth conversion can trigger Income-Related Monthly Adjustment Amounts (IRMAA), increasing your Medicare Part B and D premiums. A good calculator will help you plan conversions to stay below IRMAA thresholds. Social Security tax: A higher taxable income from a conversion can increase the amount of your Social Security benefits that are subject to federal income tax. State taxes: Don't forget to account for state and local income taxes, which can vary and impact the cost-benefit analysis of your conversion

NO.   First, an estimated payment will be due by January 15.  You can only delay to the filing date if you file and pay in full by January 31, and most people don't have all their paperwork at that point.   Second, the IRS is going to see that income as if it was spread out over the whole year, and they are going to want to see estimated payments (about $2500 each) having been paid in April 2025, June 2025, Sept 2025 and January 2026.  Since you did not make those payments, you need to make the full estimated payment by January 15, 2026, and also fill out the penalty form 2210 with your tax return and use the Annualized Method (schedule AI).  This shows the IRS that your income was not evenly spread out but that your payments matched your income in each quarter. 

The Affordable Care Act (ACA) premium tax credit is a refundable credit designed to help eligible individuals and families afford health insurance. The credit is reconciled through a process on your annual federal income tax return, meaning your final eligibility and the amount of the credit are determined when you file your taxes. The calculation of the premium tax credit depends on several factors, including your household size, income, and the cost of the benchmark health plan available in your area. If any of these factors change during the year, such as an increase in income, it is important to report those changes to the Health Insurance Marketplace promptly. Failure to report changes can result in significant tax liability at the end of the year, as you may be required to repay excess credit amounts received in advance. Regarding your specific question, TurboTax does not have the ability to track your taxable activities or notify you of changes related to the premium tax credit throughout the year. However, the TurboTax software provides detailed explanations of how the credit works and its potential tax implications during filing season. For more information, you can read this additional article about the premium tax credit and its tax effects: Health Care and Your Taxes: What's the Connection?   @Ray0200  Thanks for the question! **Say “Thanks” by clicking the thumb icon in the post **Mark the post that answers your questions by clicking on “Mark as Best Answer”  

We do not have any other information from you.   You have not told us what other income you are receiving in addition to the SS.   Without any personal information like email or SSN, provide some details about the other income you have.

That's entirely up to you, and you don't really give enough information about yourself to make very many helpful comments.   Certainly, if you need the money to live, you might need to stop contributing.  If you are not retired, have extra money, and are choosing between a regular savings account and a Roth IRA, you might stick with the Roth, because you can withdraw the contributions tax-free if needed (just like a savings account) and only pay tax if you withdraw earnings.  If you are retired and thinking about estate planning, your heirs would not owe tax whether they inherited cash or a Roth IRA.  But, if you need long term medical care, Medicaid can require you turn over a Roth IRA to them before they will cover your care, but they will not require you turn over a traditional IRA (as long as you turn over the RMD each year). 

The $6,000 senior deduction beginning with tax year 2025 is actually a temporary personal exemption for individuals who are 65 years or older (subject to income limitations and identification requirements).   The personal exemption is in addition to the standard deduction for 2025. For a single filer over the age of 65, the standard deduction is added to the over-65 deduction and the temporary bonus deduction.    The full amount for filing single (and not blind) would be as follows: Standard Deduction: $15, 750 Extra Deduction for 65 and older: $2,000 Temporary senior exemption: $6,000 For a total deduction of $23,750   The full amount for filing jointly (and not blind) would be as follows: Standard Deduction: $31,500 Extra Deduction for 65 and older: $3,200 Temporary senior exemption: $12,000 For a total deduction of $46,700   You need to consider your total income since the temporary senior exemption is limited by Adjusted Gross Income. The senior exemption of $6,000 shall be reduced (but not below zero) by 6% of the taxpayer’s modified adjusted gross income (MAGI) that exceeds $75,000 ($150,000 in the case of a joint return).   The standard deduction mentioned above will be indexed for inflation after 2025.   Add the amount you plan to withdraw from your traditional IRA to your other sources of income to produce total income. The enhanced standard deductions mentioned above (depending on your filing status) will be subtracted from your total income to produce your taxable income.   You can use this link to estimate your tax liability based on your situation and the tax brackets listed in the link: What are the 2025 tax brackets and rates (for filing federal tax returns in 2026)? 

The way to figure your tax liability on your traditional IRA distribution would be to figure out what your marginal income tax rate would likely be each year. You can use our Tax Calculator here. Once you fill it out, it will show you a federal income tax bracket.   Let's say that you fill out the form and it returns a result of 22% in the tax bracket area. You take out $10k from your traditional IRA, and have 22% withheld for federal income taxes, which is $2200. That's the calculation. If you also have a state income tax on retirement distributions, you'd want to consider a state withholding amount as well (the amount to withhold depends on your state's income tax rate(s)).   It is wise of you to consider working with your income over the next four years to maximize the senior deduction, but I want to clarify that taking an IRA distribution now does not maximize the senior deduction for you, given that you are 67 now. What it possibly would do is maximize it in the future, if doing so would then reduce your required minimum distribution to where it would put you below the $75k single/ $150k married MAGI threshold to take the full senior deduction. And that scenario would only apply if the senior tax deduction was extended past year 2028.

The conversion from a traditional IRA to a Roth IRA depends on the nature of the dollars you used to fund the traditional IRA. If you used pre-tax dollars to fund the traditional IRA, you cannot avoid paying ordinary income taxes on that amount. The amount you convert will be considered taxable income in the year of conversion. You can avoid the 10% early withdrawal penalty if those funds remain in the Roth account for five years and until you are past 59 ½ years of age. If you made nondeductible contributions to the traditional IRA (i.e. paid from out of pocket money rather than being withheld from your paycheck) you may not have to pay taxes on the conversion. However, any earnings on the contributions at the time of conversion will be treated as taxable income.

The growth in the 529 is still tax-free when withdrawn if used for qualifying education expenses, whereas the daughter (or grandchild, if you use a UGTMA) will probably pay 15% long term capital gains when they cash out, and may also pay yearly tax on any dividends.