Tax Return

I’ve calculated most of my 2016 tax return.  A more full analysis later, but here’s what I’ve found so far:

  1.  $5000 in return.  Not bad.  Has me on track for condo payoff.
  2. 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?
  3. 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.
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