Quote:
Originally Posted by redpoint5
You can also convert traditional IRAs to a Roth to bump up taxable income for the year to have enough tax liability to get the full federal credit. Essentially you avoid paying tax on the front or back-end of that portion of retirement savings. That's how I had figured to take advantage of both the federal tax credit and the modest income credit from Oregon.
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You could but it is still tricky to get the full $7500. The income cap for a couple living in the Portland Metro is 88,603. If that couple took nothing but standard deductions they would pay $7374 in federal taxes. You could likely do it as a single person with no deductions.
Also the Portland Metro has the highest cap. Live in Bend and that couple can only make $77112. Live in Medford you can only make $65,318. The cap is 120% of the median income in your metro