Hi,
In 2020 I did a backdoor IRA to Roth IRA conversion. I got a 1099-R on the IRA distribution, and of course I owe taxes on that. Then, later I withdrew the money from the Roth IRA. I got a 1099-R on the Roth distribution, and I do not owe any taxes on that amount since I paid the taxes when it came out of the IRA.
My question is, how do I keep the income from showing up twice? Even though it's not taxed, it is counted twice as income.
To explain further, let's say I did a $25,000 IRA to Roth conversion in 2020. So I owe taxes on the $25,000 I took out of my IRA. Then I took that same $25,000 out of my Roth account. I don't owe any taxes on it since it came out of a Roth account. BUT, my income is shown as $50,000 higher ($25K from IRA + $25K from Roth). Since it's the same $25,000, it should only be counted once. How do I tell Turbotax it's the same money?
I'm 64 years old, so no worries about penalties or anything.
Thanks for any help.
