Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
On my 1996 1040, I made a traditional IRA contribution and deducted the entire amount. I did the same for 1997. Both years I was easily in the 15% tax bracket. In 1998, I was blessed with more income and am now in the 28% bracket. When paying the taxes for the converted IRA, I will be paying at the 28% rate. Is it suggested that I amend my 1996 and 1997 returns and do not take the deduction for my contribution, thereby only paying tax at the 15% rate? If so, what forms would I have to file and how do I calculate the interest owed on the back taxes?
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.