- 3 - Collectively, petitioners realized $85,630.90 of conversion income in 1998. Pursuant to section 408A(d)(3)(A)(iii), petitioners elected to report the conversion income on a 4-year ratable basis for a total annual amount of $21,407.73 beginning in 1998 through 2001. B. Petitioners’ Social Security Benefits Petitioners received the following Social Security benefits during the years in issue: 1998 1999 Petitioner Robert L. Helm $2,277 $9,228 Petitioner Sara J. Helm 6,561 6,654 Total 8,838 15,882 C. Petitioners’ Forms 1040 For each of the 1998 and 1999 tax years, petitioners timely filed a joint Form 1040, U.S. Individual Income Tax Return. On both returns, petitioners listed their occupation as retired. Each petitioner attached a Form 8606, Nondeductible IRAs, to their 1998 return reporting their respective amount of conversion income and electing to ratably report such income over a 4-year period. Petitioners reported the following income items on their returns for the years in issue:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011