From Traditional to Roth

[RNuse09]

I have a cliet who did a conversion in 2010. We are going to include the FMV of the account at conversion, half in 2011, half in 2012, there were no non deductible contributions made to the ira. Where should I report the income on the 1040?

Thanks,

[Dusty2004]

I believe you use proseries

I have a cliet who did a conversion in 2010. We are going to include the FMV of the account at conversion, half in 2011, half in 2012, there were no non deductible contributions made to the ira. Where should I report the income on the 1040?

Thanks,

If you did this client last year the information will transfer automatically from last year and will show up.

If you did not do this client from last year then I am not sure and I am not near my program to get you an answer. I will look later when I am there.

Let me know.

Dusty

[RNuse09]

Thanks

I did not prepare this return in 2010.

[WhiteOleander]

This info will be reported on form 8606

[Dusty2004]

Worksheets

I did not prepare this return in 2010.

I will look and see if Pro Series has any specific worksheets that they are using but start at the 8606 and double click on the appropriate line. That will take you to the worksheet. I will look later and let you know.

Dusty

[FEDUKE404]

It's all in the Form 8606

I'm not quite sure I understand your question, but in the simplest of terms the Form 8606 works all of this out for you.

Go back and look at a 2010 Form 8606. (One likely should have been prepared!)

Part I takes care of any basis/year-end values.

Part II determines the taxable amount on line 18. The amounts that will be taxable in calendar years 2011 and 2012 are calculated/shown on lines 19 and 20(a/b).

(The numbers from the Form 8606 also flow to lines 15a/b on the 2010 Form 1040.)

I would assume any tax software worth its oats would pick up the appropriate carryover numbers for any deferred amounts.

FE

[RNuse09]

CLient never did 8606

The client never did the 8606. Do you think I would have to ammend the 2010 return because of this

[BP.]

Are you saying that on their completed 2010 return, the 1099-R for the conversion was not addressed at all? (Would have been via the 8606.)

[FEDUKE404]

Houston - we have a problem!

The client never did the 8606. Do you think I would have to ammend the 2010 return because of this

The client should have received a Form 1099-R for the 2010 conversion.

If that "income" was not reported/shown on the 2010 tax return, the absence of any Form 8606 might be the least of your current problems!

FE

[dan doshan]

The client never did the 8606. Do you think I would have to ammend the 2010 return because of this

As mentioned.. first just verify if the conversion was even accounted for on his 2010 return. I believe the default position in 2010 was half would be taxed in years 2011 and 2012, unless the taxpayer elected to have all taxed in 2010.
If the conversion was accounted for on his 2010 return then bring up form 8606 for 2011 and see if you can make the appropriate entry so as one half of the conversion is then taxed on his 2011 return.