I haven't filed our returns yet, but it looks like we get a refund from federal and pay a small amount to the state. This takes into account both of our Roth conversions that occured in 2010.
Married couples can each specify how they want the taxes handled on the conversion in their name. I could have opted to pay the tax on my Roth conversion in 2011 and 2012. As could my husband. However, since it will definitely not help us to have additional income on our return in 2012, we are paying the tax this year. This year our taxable income is quite low because we do not have to pay income on income earned in a combat zone. It's so low that if I had not converted so much money to the Roth IRA's we would have been eligible for the Earned Income Tax Credit. Weird. It's been our best income year.
Federal: $1,990
State: ($124)
I will do another review of my inputs this week. If all looks good I will file, even though the IRS won't process it until mid February. It doesn't hurt to have it done!
Tax Return Results
January 24th, 2011 at 04:48 pm
January 24th, 2011 at 05:14 pm 1295889293
January 24th, 2011 at 06:26 pm 1295893566