I’ve calculated most of my 2016 tax return. A more full analysis later, but here’s what I’ve found so far:
- $5000 in return. Not bad. Has me on track for condo payoff.
- I don’t get to write off the $5500 IRA money b/c I earn too much. That’s terrible. I need to do a roth conversion asap. If I didn’t take a tax break on some of the contributions, maybe my basis is lower and the conversion will be cheaper. If I convert $63,314, I’ll be raped by Federal and state taxes. My expected income for this next year if I don’t negotiate anything is at least $160k. The next tax bracket is $190k, so I’d pay 37.3% on the first $33k and 42.3% on the next $33k. $11,190 + $13,959 = $25149 cash needed to convert. Fuck. I though it was going to be $15k. I’m an idiot for forgetting about California taxes. Thanks for fucking me over for retirement, California. Conversion doesn’t seem very appealing at the moment. If I left the state in retirement, the tax rates elsewhere would be much lower. Better to see if I move elsewhere in the next several years?
- I still haven’t put in my $1500 investment loss deduction (okay, maybe I only have about $1000 left). I need to get the 1099div from Edward Jones, and that will probably take another 45 days because they are fucking slow. I’ll probably get a nice carry over to next year though. I need to find that old 1099 and write up a summary. I wonder if they even mailed me those documents. Since they closed my online account, I have no access to any old tax forms or statements.