Instructions

1

Locate your IRS Form 1099-R. If you converted from a retirement plan such as a traditional IRA to a Roth IRA, the custodian or administrator of the transferring plan must provide you with a copy of Form 1099-R. Form 1099-R shows the amount of your conversion, which is treated as a distribution for tax purposes.
2

Get a copy of IRS Form 1040.
3

Look at line 2a of your Form 1099-R. According to the IRS, the total amount converted from your IRA to your Roth should appear on line 2a. If it is not there, contact the administrator of your transferred account.
4

Complete IRS Form 8606, "Nondeductible IRAs." If you convert amounts from a traditional IRA to a Roth IRA, you must complete Form 8606. For most investors, the entire amount of your conversion is reportable as taxable income. However, if you made any nondeductible contributions to your traditional IRA, they are not taxed at the time of conversion.
5

Transfer the taxable amount to your Form 1040. On Form 8606, line 18 shows you the taxable amount of your conversion. Transfer this amount to line 15b of your Form 1040.
6

Complete the rest of your Form 1040. The taxable amount of your conversion will end up appearing as part of your total taxable income on Form 1040 and will be taxable at ordinary income tax rates.