Understaning Traditional IRA to Roth Rollovers and California Tax

Question

Hi,  I am disabled, I get income from Social Security, and some smaller income from interest, ordinary dividends, and also rental income.  That said, we are talking about 45-48K or so, and 5100 credit for solar, and I was trying to forecast how much I can roll over from a traditonal IRA to Roth, it seems to me I can rollover 11K with zero laiblity to both Federal and California, yet the second that dolloar amount changes by 1 dollar for the rollover it makes calfiornia a $900 a month liablity, I can even rollover to 32,500 with a total of zero federal tax lability and only $950 california, not sure what happens here I was hoping you can explain why I jump to zero, with 1 incrmental dollar over 11K and only  with a calfiornia Tax liablity of 900 and if I add another 21,500 in rollover it only costs 950.

Thank you!

KeriC · Answer

@Matt_Y It sounds like creating the scenarios within an account may be helpful. We definitely don't want to discuss your personal details here but our Customer Support team will be able to view specific information entered into your account and can provide additional guidance and/or resources for your specific situation.

Matt_Y · Answer

Yes Andy,  it is for 2024 - if I share all the information, basically income summary and deductions which is all that's avaialbe for me to see for 2024 for both scenarios could you help?

AndyS · Answer

Hi Matt_Y,

Without seeing your full tax situation, it's really hard to say everything that is taken into account with the calculations on your return. If this is something happening in your current 2024 account, you can reach out to our support team while you are logged into your account and they should be able what the factors are. That being said, tax planning is out of our scope since we focus on the preparation of individual returns. It is typically best to consult a local tax professional if you are looking for tax planning services.