Hello
My daughter (20 years, full-time student) has a Traditional IRA account with a balance of 20k now. This year she only has an income of $1500. So can she convert T-IRA balance of $10,000 to Roth IRA without paying any taxes?
I am asking this question as she will have a standard deduction of $12,950 as a single filer for 2022.
$1500 (income) + $10,000 (conversion) = $11,500 which would be still lower than the individual standard deduction for 2022.
Please let me know if the IRA conversion amount from 1099-R/5498 is not considered as a standard income for counting towards a standard deduction.
Thanks
