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Author: kljorgensen One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121150  
Subject: Ohio tax benefit for conversion of TIRA to RIRA Date: 3/9/2005 7:30 AM
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Finished my taxes last night and was surprised by a $171 Ohio tax credit that we got from the conversion of my spouses TIRA to Roth.

In Ohio there is a joint income credit that you get if both spouses have at least $500 of income. Since my spouse does not work she had no income for the year and I did not expect to get the credit. Last year, however, we converted her small TIRA to a Roth which generated about $2k of income for her and resulted in a $317 federal tax obligation. This we anticipated and felt it was in our best interest. This income qualified us for the joint income credit and gave us the $171, so the true cost of her IRA conversion was $146 or only about 7%.

I know this is a bit of a unique case but I thought it might be useful to someone to know about.

klj
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