Get your taxes done using TurboTax
Yes, any income resulting from the conversion of an IRA (other than a Roth IRA) to a Roth IRA will be excluded in calculating the MAGI for Roth IRA Purposes (Pub 590-A). I never said anything else. But you need to tell TurboTax that you made a conversion after entering Form 1099-R for it work correctly.
A mentioned before, when I tested it, TurboTax is correctly excluding conversion for the MAGI for Roth IRA Contribution Purposes.
When I reviewed the token you sent, you had selected "did something else with it" (see pictures below) and not a conversion to Roth IRA. Therefore, TurboTax correctly included the amount in your MAGI.
When I selected the right steps, as mentioned in my previous reply, in the token return to show a conversion to Roth IRA, TurboTax correctly excluded the the income from the conversion for the MAGI and showed no longer the message for an excess Roth IRA contribution.
To confirm, you are using TurboTax Desktop?
