Splitting up the taxes
If a Roth Conversion is done in 2010, can half of the conversion go onto the 2010 tax return and the other half be split between 2011 & 2012 tax returns?
If a Roth Conversion is done in 2010, can half of the conversion go onto the 2010 tax return and the other half be split between 2011 & 2012 tax returns?
Permalink Submitted by mk foss on Fri, 2010-09-17 21:48
No, you suggestion will not work. The default is to include one-half of the income on the 2011 return and one-half on 2012. The taxpayer may ELECT to report all of it on the 2010 return. The decision is per taxpayer, not per conversion. So if a taxpayer does more than one conversion during the year, they will either all go on 2010 or 50% of the income each year. Even though a couple files a joint return, they each get to make their own election. So one spouse could pay the tax with the 2010 return and the other would use the default method 50% in 2011 and 50% in 2012.