I have been doing a backdoor conversion from a Traditional IRA to Roth for a number of years. Each year it is not taxed, but this year TurboTax keeps designating it as taxable. I have delete and reentered, watch videos, read posts, etc. I'm beyond frustrated. This is not my first time and I cannot fix it. I have been working on this for days.
I'm over 59-1/2
I contributed $7000 to my Traditional IRA which has a $0 basis.
I made the 2019 contribution to the Traditional IRA in March 2020 along with a 2020 contribution for $7000 each year.
The conversion for both 2019 and 2020 was done a few days later plus $0.92.
I did not receive a 1099-R.
The non-taxable conversion amounts for prior years show up correctly in TurboTax.
I have gone through all the steps as I previously stated and got the answers as expected, but TurboTax designates it as taxable on the 8606 and therefore increased my tax due.
Note: I do have an inherited Traditional IRA that I have had for several years. It has never impacted my conversions. If I remove it, the same taxable situation occurs to the conversion.
H E L P ! All help is appreciated and I haven't even gotten to adding my mother-in-law as a dependent along with her care.