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Get your taxes done using TurboTax
First, make sure that the non-deductible contribution to your Traditional IRA was reported on your tax return for the year that you made the contribution. This will report the $2600 basis on Form 8606 and allow that portion to be considered non-taxable when it is converted to a Roth IRA later.
If you did do this, but a portion of the $2600 that was converted is still being taxed, then it could be due to the pro-rata rule. This comes into play when you consider all of your Traditional IRA accounts and some of the money in the account was pre-tax contributions and some was after-tax contributions. If that is the case, then every distribution from any of your Traditional IRA accounts will be made up of a proportional mixture of pre-tax and after-tax funds. This would make a portion of the $2600 that was converted to the Roth IRA taxable.
If you need to double-check that you have entered the non-deductible contribution correctly so that it is reported on Form 8606, see the instructions in the TurboTax article below:
How do I enter a backdoor Roth IRA conversion?
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