Converting IRA to Roth to save on taxes

[danhuff12]

I understand 2024 tax rate is 12% up to $94,300. My adjusted gross income for 2023 was 85,760 and taxable income was $48,012. Year 2024 income will be slightly less. Is that 12% tax threshold based on the AGI or taxable rate?

Based on 2023 income, how much could I convert before going over 12% bracket?

Thank you. 

[AR_CPA2]

Hello Danhuff12,

The tax rate applies to your Taxable Income not Adjusted Gross Income. 

For 2023 the 12% tax rate is up to Taxable Income of $89,450 for Married Filing Joint.

So if you want to stay within the 12% tax bracket, then you make sure your taxable income doesn't go over $89,450.

Thanks for participating in TurboTax's Ask the Expert event today. I hope this information was helpful!

Have an amazing day.

AR (CPA 10+ years)