Thanks so much for the detail steps how to report it in TurboTax.
I did the same as the steps described. This Roth conversion was from a deductible IRA, so it will be taxed, that I understand. However, what is unexpected and some questions are:
1. Is this amount of conversion considered as unearned income? (I understand it is considered as income, but is it considered as unearned income?)
2. Since the dependent files her own tax return and checked " could be claimed by someone else", what is her standard deduction would be? Would the standard deduction include the Roth conversion amount ?
3. Next even surprisingly, this income is taxed using the parent's margin rate? This is not a investment income but just move to another retirement account.
Finally, is anyway to reverse this conversion?
Thanks
