Hal_Al
Level 15

Get your taxes done using TurboTax

Q. If the conversation is done now, does one has to pay the income tax on the total $7k, or only on $1k as tax on $6k is already paid (non-deductible contributions)?

A.  Only on the $1000 "earnings".

 

The TurboTax interview can handle this. Read and answer carefully.  Review form 8606, part II, to verify the calculations.