I've read over and over and I just can't figure this out. I am grateful for any help. Numbers are fake, but situation is accurate.
I earn over the usual MAGI Roth limits. I contributed $15K to a traditional IRA and then immediately used that to backdoor convert into a Roth. My understanding is that this should incur no tax and it should also not be considered an overpayment and incur a penalty. However, Turbotax is taxing that $15K and also telling me I am over the Roth limits and owe a penalty tax. I did enter my 1099-R for the traditional IRA.
Should I be incurring any tax and should I be penalized on this conversion? If not, how do I get Turbotax to understand?
I've tried many combos of buttons and answers...
