Q: How do I get a copy of a prior tax return and W-2?

A: If you filed your tax return through Pascual & Associates Tax Service, we can provide a copy for up to three years for $50 for each year. Otherwise, as long as you filed your tax return with the IRS, you can request a photocopy or a computer transcript (a line-by-line listing) of the information on your filed tax return. Photocopies and transcripts are free from the IRS. If you need an actual copy, then you must complete Form 4506 and pay a $39 fee to the IRS for your filed tax return and all related tax information, such as your Form W-2.

Q: How much does it cost to have my taxes prepared?

A: The cost of tax preparation is based upon the complexity of your tax return.

 Q: Are the preparers registered and licensed?

 A: Each of our preparers are registered and licensed in accordance to IRS mandates and California Tax Education Council requirements.

Convert Traditional IRA into Roth IRA

The best scenario for this strategy is when: (1) your traditional IRA is (or was) loaded with equities and got shellacked by the 2008 stock market meltdown and/or this year's stock market volatility and (2) you expect to be in the same or higher tax bracket during retirement.

If your traditional IRA is worth substantially less than it once was, the tax hit from converting it into a Roth account is also substantially less. That's because a Roth conversion is treated as a taxable liquidation of your traditional IRA followed by a non-deductible contribution to the new Roth account.

After the conversion, all the income and gains that accumulate in the Roth account, and all withdrawals, will be federal-income-tax-free, assuming you meet the requirements for tax-free withdrawals. So you avoid having pay high tax rates on withdrawals taken during your retirement years.

As was the case last year, there is no longer any income restriction on Roth conversions. Even billionaires can do them!

Warning: The special deal for 2010 conversions that allowed you to spread the resulting taxable income over two years (50% in 2011 and the remaining 50% in 2012) is not available for 2011 conversions. You must report all the conversion income on your 2011 return. So if you did a conversion last year and are considering doing another one this year, remember that you would have a double helping of conversion income on this year's return. That could push you into a higher tax bracket and make the idea of a 2011 conversion less attractive.