MFJ, over 65, no income, not collecting SocSec, created a taxable "income event" by conversion 109,000.00 from IRA to a Roth IRA.
The plan is to convert in December and make a 1040ES online payment same month to IRS for approximately 9,433.00
The conversion amount is flexible (just keeping it at 12% tax rate) but one concern is; Would IRS require the 9k payment to be made in quartely amounts or is it Ok to make a lump sum payment in December ?
from users.nber.org/~taxsim/taxsim27/
Basic Output:
1. Record ID: 1.
2. Year: 2021
3. State (SOI code): 0
4. Federal IIT Liability: 9432.23
5. State IIT Liability: 0.00
6. SS Payroll Tax Liability: 0.00
Marginal Rates wrt Earner
7. Federal Marginal Rate: 12.00
8. State Marginal Rate: 0.00
9. Taxpayer SS Rate: 15.30
Federal Tax Calculation: Base + $1
10. Federal AGI 109000.00 109001.00
11. UI in AGI 79+ 0.00 0.00
12. Social Security in AGI 84 0.00 0.00
13. Zero Bracket Amount 27001.06 27001.06
14. Personal Exemptions 0.00 0.00
15. Exemption Phaseout 91+ 0.00 0.00
16. Deduction Phaseout 91+ 0.00 0.00
17. Deductions allowed 0.00 0.00
18. Federal Taxable Income 81998.94 81999.94
19. Federal Regular Tax 9432.23 9432.35
20. Exemption Surtax 88-96 0.00 0.00
21. General Tax Credit 75-78 0.00 0.00
22. Child Tax Credit*17/22 98 0.00 0.00
23 Refundable Part 0.00 0.00
24. Child Care Credit 76+ 0.00 0.00
25. Earned Income Credit 75+ 0.00 0.00
26. Alternative Min Income: 109000.00 109001.00
27. AMT 0.00 0.00
Additional Medicare Taxes 2013+
XX Net Investment Income Tax 0.00 0.00
XX Additional Tax on Earning 0.00 0.00
28. Income Tax Before Credits 9432.23 9432.35
29. FICA 0.00 0.15
Decomposition of Federal Marginal Rate
(taxpayer earned income)
Regular Income Tax
Bracket rate from X,Y or Z 12.00