Okay, I think I am almost there, but did run until an issue after entering the two 1099R forms as suggested (as best as I could follow). I appreciate your help and patience as I work through this! As a quick review I have two 1099Rs.
1) Pension institution 1099R: $1000 distribution for the pension paid directly to the Roth IRA institution (the Roth IRA institution converted the money from a Traditional IRA to the Roth IRA). The $1000 is the money I need to pay taxes on somewhere in the process.
box 1: $1000
box2a: <blank>
box 2b Taxable amount not determined <blank or not checked>
box 2b Total distribution box - checked.
Box 7 distribution code “G" with IRA/SEP/SIMPLE not checked.
2) Roth IRA institution 1099R– $7000 distribution
box 1: $7000 (which includes 2022 $6000 backdoor contribution, as well as the $1000 which came from the pension company and was converted to the Roth)
box2a: $7000
box 2b Taxable amount not determined - checked
box 2b Total distribution box - checked.
Box 7 distribution code ”2" with IRA/SEP/SIMPLE checked.
I entered in the non-deductible traditional IRA contribution of $6000 as stated. When I then entered the $7000 1099R , I see that Turbotax listed 1040 box 4a (IRA distributions) as $7000 and then 1040 box 4b (taxable amount) as $1000. However, when I then entered the pension's $1000 1099R with distribution code “G" per the directions, Turbotax filled in 1040 box 5b with “ROLLOVER” and then filled in 1040 box 5b “taxable amount” as $1000. Therefore with 1040 box 4b) and 1040 5b) both filled in with $1000, I now would be paying tax on the $1000 twice. I saw my projected tax refund get reduced for each 1099R entered so I can could tell I was getting double taxed.
I’m thinking the way I entered in the $7000 1099R may need to be tweaked? Perhaps I should have only entered in Box 1 and box 2a there as $6000 (or perhaps box 1 as $7000 and box 2a as $1000??) , and then let Turbotax handle the correct reporting of the taxable $1000 from the entry of the $1000 1099R? Or any other suggestion how to fix or avoid this double taxation of the $1000?
Thanks!!
