Are income taxes from IRA conversions covered under the standard deduction?

[jordan-shotwell]

If I convert a 401k or a traditional IRA to a Roth IRA, the conversion is reported as income subject to regular income taxes. Does the standard deduction ($6,400 for single, $12,700 for married jointly in 2017) cover this increase in income taxes from the conversion?

[Texas Roger · Accepted solution]

The conversion amount is added to your income and is part of your Adjusted Gross Income. The standard or itemized deductions and exemptions are subtracted from your AGI to determine how much of your AGI is taxable. If you already had other income that was more than the standard or itemized deductions and exemptions, none of the conversion amount is covered and you would have to pay taxes on the entire amount. If you had no other income, then some or all of the conversion amount would be reduced by the deduction and exemptions and so less of it would be subject to taxes.