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Trying to move taxable income from 2011 to 2010?
We didn't make enough money in 2010, so we end up wasting a foreign tax credit.
Is there a way to shift income into 2010 from future years. I think we are too late for the Roth to Traditional IRA transfer. Is there anything else we can do?
thanks
Stephen, you're right. I just wrote it backwards. thanks.
Dave - Yeah. All our income estimates(dividends, self employment etc) were high and all deduction estimates (state taxes, medical, contributions) were low, so our overall estimate was off a good amount or we would have moved money from the Traditional to the Roth IRA. We just didn't expect to be off by so much. thanks
5 Answers
- Anonymous1 decade agoFavorite Answer
No. If you had anticipated 2011 income that you could have moved up BEFORE the end of 2010, that would be a possibility. Too late now.
- StephenWeinsteinLv 71 decade ago
There is no such thing as a "Roth to Traditional IRA transfer".
In theory, if you contributed to a traditional IRA for 2010, and deducted that contribution, you could "recharacterize" that contribution as a Roth contribution, so that you lose the deduction have the same amount of 2010 income as if you did not make the contribution. This would reduce your income in the future year when you took a distribution from the retirement account.
- 1 decade ago
You should have told whomever was paying you to delay until after Jan 1, 2011. If the income was constructively received in 2010, that's the end of it. You can't un-ring the bell now.
You cannot change accounting methods without the consent of the Commissioner of Internal Revenue, nor would doing so be retro-active to any date prior to the date that the Commissioner approved the change.
- troLv 71 decade ago
how much could the foreign tax credit be? any I have ever seen are so small it makes very little difference
and no, if you have income reported in any specific year, it is reportable in that year only
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