Hi All - I've been in the weeds a bit reading various threads about how the state of Illinois doesn't apply state income tax (4.95%) to Roth conversions and have a couple questions.
Each year, on the first week of January, I usually complete the Backdoor Roth IRA process for both my wife & I. We are over the limit to make direct Roth IRA contributions.
Am I correct in saying that when we file our taxes for the year, we should be inputting something in our tax software (I use FreeTaxUSA) for the IL State Tax Return that says these conversions should be excluded? If so, does anyone know where exactly/what line on the IL-1040 Tax Form this is recorded? (Or maybe how to input with FreeTaxUSA?)
Any advice/input from anyone who has done this process before would be extremely helpful & appreciated!
Each year, on the first week of January, I usually complete the Backdoor Roth IRA process for both my wife & I. We are over the limit to make direct Roth IRA contributions.
Am I correct in saying that when we file our taxes for the year, we should be inputting something in our tax software (I use FreeTaxUSA) for the IL State Tax Return that says these conversions should be excluded? If so, does anyone know where exactly/what line on the IL-1040 Tax Form this is recorded? (Or maybe how to input with FreeTaxUSA?)
Any advice/input from anyone who has done this process before would be extremely helpful & appreciated!
Statistics: Posted by ForeverInvestorILL — Sun Dec 15, 2024 10:45 am — Replies 0 — Views 29