TurboTax Keeps Taxing My Backdoor IRA Conversion -...
jls76112
Returning Member

TurboTax Keeps Taxing My Backdoor IRA Conversion - Not my first year to convert

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.

 

Background:

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.

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