roth IRA conversion

Forum|Forum|3 years ago
December 9, 2022
1 reply
2 views

Using Turbtax Premier 2022, doing what-if planning for a Roth IRA Conversion. I am retired and have a very simple return, no special income or deductions. Let's say my income for 2021 is $2K. When I enter data for a $30K Roth conversion, the Total Income field shows $32K as expected. However, when I enter $35K conversion, the Total Income is $40K instead of the $37K I had expected. Similarly, a $40K conversion produces a $48K Total Income. Does that seem correct? Shouldn't the Total Income be $32K, $37K, and $42K, respectively?

Thank you,

Michael

Best answer by VolvoGirl

Good catch!

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

To see the Social Security Benefits Calculation Worksheet in Turbo Tax Online version you would have to save your return with all the worksheets to your computer. Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the right side.

NCperson

Level 15

@silverhils - look at the social security line - part of that gets taxed as the total income rises....it begins to kick in at $32,000 of taxable income (married filing joint)