Best Tax Calculator(s)?

[Shane]

What are the best site(s) for modeling tax filing scenarios for 2018? Tried TaxCaster and one other calculator, but they didn't seem very well suited to our situation. In 2018, we'll have dividends and capital gains from the sale of stocks, but $0 of earned income from work. I'm looking for a calculator that will allow me to optimize tIRA to Roth conversions. When I try to put Roth conversions into the calculators as "income," they tell me we're going to get $XK tax refund, which I'm assuming is from the EITC? Only problem is, I don't think we can qualify for EITC, because our investment income is >$3400. Is there a tax calculator that's better suited to use by people who are FIRED and living off of investments? A calculator that would allow me to see the tax implications of increasing Roth conversion amounts?

[gocurrycracker]

I don't know of a great all-purpose calculator. I use Excel.

You can use Taxcaster. Roth IRA conversion should go under IRA/Pension distributions rather than income.

[Shane]

Thanks Jeremy! After taking a closer look at Taxcaster, I found the "Other Income" tab. Didn't notice that, at first.

[Shane]

Sorry, but even after running Taxcaster a few more times, I'm still confused.

Entering on Taxcaster:

-Married filing jointly with one dependent
-Total taxable income - $0
-Total tax withholdings - $0
-Estimated total state/federal taxes paid - $0
-LTCG - $5K
-Qualified dividends - $13K
-Interest - $150
-Charitable contributions - $50
-tIRA to Roth conversion - $10K

Taxcaster 2018 Estimated Federal Refund: $1,400

WTF? Why? When I raise the tIRA to Roth conversion amount to $20K, Taxcaster still says we'll get a $1,400 federal refund. When I raise the tIRA to Roth conversion amount to $30K, Taxcaster says we'll receive a $1,382 refund from the federal government. Raising the tIRA to Roth conversion amount to $40K, Taxcaster predicts we will get a $382 refund from the federal government. Refund of what? We haven't paid anything to get refunded. Is Taxcaster predicting a tax credit? My understanding is, we don't qualify for the EITC, because we've got too much investment income, right?

Do Taxcaster's predictions for our 2018 taxes make sense, or am I doing something wrong in the way I'm inputting our data?

[gocurrycracker]

1 dependent? There is a $2,000 child tax credit


For 2018 you have a $24,000 standard deduction. That much of normal income is tax free, including Roth conversions. You also have another $78k or so of tax free LTCGs and qualified dividends.

[Shane]

1 dependent? There is a $2,000 child tax credit


For 2018 you have a $24,000 standard deduction. That much of normal income is tax free, including Roth conversions. You also have another $78k or so of tax free LTCGs and qualified dividends.

Cool. Thanks Jeremy!

[benv1]

1 dependent? There is a $2,000 child tax credit


For 2018 you have a $24,000 standard deduction. That much of normal income is tax free, including Roth conversions. You also have another $78k or so of tax free LTCGs and qualified dividends.

Jeremy, would a large negative number coming in on line 17 (Sch E) affect the potential $78k of LTCG/QD? Or, only to the extent it drives down AGI keeping the tax payer in the 10% or 12% bracket?

[Lamha]

You can get up to $1,400 child tax credit refundable to you if you have at least $2,500 of earned income.  Since you have no earned income, you are not qualified for the CTC.

[gocurrycracker]

1 dependent? There is a $2,000 child tax credit


For 2018 you have a $24,000 standard deduction. That much of normal income is tax free, including Roth conversions. You also have another $78k or so of tax free LTCGs and qualified dividends.

Jeremy, would a large negative number coming in on line 17 (Sch E) affect the potential $78k of LTCG/QD? Or, only to the extent it drives down AGI keeping the tax payer in the 10% or 12% bracket?

There is some room to play here. If total income is less than $100k then you can deduct up to $25k of Schedule E losses against other income.

Google "small landlord exemption" for more details