AnnetteB6
Expert Alumni

Get your taxes done using TurboTax

You are reporting a Traditional IRA to Roth IRA conversion.  If the Traditional IRA has no basis (meaning there was never any non-deductible contribution made to the account), then you are right, the result of the conversion would be taxable income reported on Form 1040 line 4b.  

 

But, if the Traditional IRA did have a basis and the amount that was converted was less than or equal to that basis, then there would be no taxable income.  

 

Go back through the Form 1099-R entry and pay close attention to the follow-up questions as well as the follow-up questions after all 1099-R forms have been entered and you are leaving that section of the return.  Make sure your answers are accurate because those questions do affect the tax calculation.

 

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