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Author: FlyingDiver Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75802  
Subject: Re: IRA to Roth IRA Conversion Date: 7/29/2013 5:39 AM
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Turbo tax was quite clear on this. I well know because I had to do some fancy footwork to stay in the 15% bracket the last 2 years.

Play with it in TurboTax (for 2012). Enter $10,000 of dividends and other income to get taxable income of $70,699 (married-joint). Then add $2 more income to bump the T.I to $70,701. The tax jumps a whole lot, because the entire $10K of dividends is now taxed.


I'm with Peter on this, you had something else going on. I just faked up a return in my copy of TT Deluxe 2012. $10,000 in Dividend income, the rest in LTCG income. At $70,700 Taxable Income, tax owed was $0. At $70,704 it was $1. I couldn't get it to show tax at the intermediate numbers because of the built-in rounding that the IRS allows.
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