Roth Conversion amortization tax reporting
How does one go about reporting the income from the 1099 for the Roth Conversion to amortize that income into 2011 and 2012? Thank you!
How does one go about reporting the income from the 1099 for the Roth Conversion to amortize that income into 2011 and 2012? Thank you!
Permalink Submitted by Alan Spross on Mon, 2011-02-14 20:00
This is all handled on the re designed Form 8606 for 2010. The full conversion is reported on the form and there is a box to check if taxpayer wants the conversion to be taxed in 2010. If the box is not checked, then the next line (# 20) splits the conversion into 50% for 2011 and 50% for 2012.
Then in 2011, the 50% share calculated on the 2010 8606 will be reported on the 2011 tax return, and the same for 2012.