DanaB27
Expert Alumni

Get your taxes done using TurboTax

I cannot recreate the issue that TurboTax is including the Roth conversion in the MAGI on the Roth IRA Contribution Limit Worksheet. 

 

There is an issue with line 1 of the Modified Adjusted Gross Income for Roth IRA Purposes Worksheet where TurboTax is using line 1z of the 1040 (FAQ). But this issue excludes income and doesn't seem to apply to your situation.

 

It would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online

 

  1. From the left menu select Tax Tools. 
  2. Then select Tools below Tax Tools. 
  3. A window will pop up which says Tools Center.  
  4. On this screen, select Share my file with Agent. 
  5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
  6. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

 

The instructions for TurboTax Download

 

  1. On your menu bar at the very top, click "Online"
  2. Select "Send Tax File to Agent"  
  3. Click "Send"
  4. The pop-up will have a token number
  5. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

 

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

 

 

Question 1)

 

If you requested the return of an excess contribution plus earnings with your financial institution then you most likely cannot undo it and will have to report the earnings. But please check with your financial institution.

 

 

You will get a 2024 Form 1099-R  in 2025 with codes P and J for the withdrawal of excess contributions and earnings. This 1099-R will have to be included on your 2023 tax return and you have two options:  

  • You can wait until you receive the 2024 Form 1099-R in 2025 and amend your 2023 return or
  • You can report it now in your 2023 return and ignore the 1099-R when it comes unless there is Box 4 Federal Tax withholding and/or Box 14 State withholding. Then you must enter the 2024 Form 1099-R into the 2024 tax return since the withholdings are reported in the year that the tax was withheld. The 2024 code P will not do anything to the 2024 tax return income but the withholdings will be applied to 2024.

 

To create a Form 1099-R in your 2023 return please follow the steps below:

 

  1. Login to your TurboTax Account 
  2. Click on the "Search" on the top right and type “1099-R” 
  3. Click on “Jump to 1099-R”
  4. Answer "Yes" to "Did you get a 1099-R in 2023?"
  5. Select "I'll type it in myself"
  6. Box 1 enter total distribution (contribution plus earning)
  7. Box 2a enter the earnings
  8. Box 7 enter J and P
  9. Click "Continue"
  10. On the "Which year on Form 1099-R" screen say that this is a 2024 Form 1099-R.
  11. Click "Continue" after all 1099-R are entered and answer all the questions.
  12. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of earnings under "Corrective distributions made before the due date of the return".

 

Please be aware, code P will say in the drop-down menu "Return of contribution taxable in 2022" but you can ignore that since the follow-up question will tell TurboTax that it will be taxable in 2023.

 

 

 

Question 2)

Please see What is the TurboTax 100% Accurate Calculation Guarantee? 

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