On December 22, 2017, The Tax Cuts and Jobs Act was signed into law. The information in this article predates the tax reform legislation and may not apply to tax returns starting in the 2018 tax year. You may wish to speak to your tax advisor about the latest tax law. This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.
This is just a reminder that if you did a Roth Conversion in 2010 and elected to defer the tax on that conversion to 2011 and 2012, don’t forget to include one-half of the conversion taxable income on your 2012 return.
Normally, Roth conversions are taxable in the year the conversion occurs. However, under a special rule that applied only to conversions made in 2010, taxpayers could pay the entire tax in 2010 or elect to include half the taxable amount in their income for 2011 and the other half for 2012.
However, you may not have to report the other half in 2012 if you recharacterized your 2010 Roth rollover or conversion or received a distribution in 2010 or 2011 of any of the taxable amount of your rollovers or conversions (in which case, you may have to report an amount other than half on your 2012 tax return).
If you already filed your return without including the required amount of the conversion on your 2012 return, you will need to file an amended return.
If you have questions related to delayed income reporting from a 2010 conversion, please give this office a call.