The worksheets are available on Form 1040 InstructionsPDF or Publication 590-A, Contributions to Individual Retirement Agreements (PDF). The deduction is claimed on Form 1040, Schedule 1PDF. Non-deductible contributions to a traditional IRA are reported on Form 8606, non-deductible IRASPDF. Recharacterizing your traditional IRA contributions into roth IRA contributions will not affect your tax situation in the current year.
Unlike traditional IRAs that are funded with pre-tax dollars, contributions to Roth IRAs are made with after-tax dollars. If you are eligible to claim a tax deduction on your IRA contributions, you can report your IRA contributions on Form 1040, Schedule 1, Part II, Income Adjustments. But if you have an employer-sponsored plan that you funded with after-tax dollars, such as a Roth 401k, you can transfer those funds to a Roth IRA account without incurring taxes or penalties. If you prefer to have your earnings grow tax-free rather than tax-deferred, you should consider requalifying a Roth IRA.
If eligible, you can make tax-deductible contributions to a traditional IRA and accumulate earnings within the IRA tax-free until you are asked to start making withdrawals, usually in the year you turn 72. But even if your IRA contributions aren't deductible, you should report them contributions on your tax return. If you realize that your traditional IRA contributions aren't deductible, you can do one of two things. As an over-the-line deduction, the IRA deduction can be taken if you itemize your deductions or if you take the standard deduction. Depending on the type of IRA you have, you may need Form 5498 to report the IRA contribution deductions on your tax return.
It is less common to renew retirement plans that consist of after-tax contributions simply because most contributions to employer-sponsored plans are made with pre-tax money. If you receive an unqualified distribution from your Roth IRA, you must report that distribution on IRS Form 8606. In general, FICA (Social Security and Medicare) taxes are calculated on wages, including any wage deferrals that a person makes in a company plan, such as a SIMPLE IRA or 401 (k). If you have a retirement plan through your employer, your IRA deduction may be limited if your income exceeds certain income limits. This ongoing count, known as your IRA base, helps you keep track of how much of your IRA has already been taxed.
You can (do nothing), which would require you to pay taxes on those contributions now and increase the tax base in your traditional IRA, or (request that your contributions to the traditional IRA be recharacterized as contributions to the Roth IRA).