Hi my wife had a traditional IRA, balance was 11,064, then, we were told about back door ira to roth ira. We put in 7,000 to the traditional IRA in November, so full balance of 18,064, then converted this full balance to a Roth. I entered into Turbotax, and I am getting the Taxable amount as 11,064 which makes sense that it should be taxable. Another post mentioned that I should also be paying 61% of the 7,000, since it was mixed with the base 11,064. 7000/18064 or 38% untaxable of the 7000, and 61% taxable of the 7,000. Now it appears that we do come over the adjusted income limits for Traditional IRA so that was why the planned back door. So question is should my Turbotax entry be charging more than the original traditional balance of 11064 and showing part of the 7,000 as taxable since they were mixed in the 2020 year? If so, what could I have entered incorrectly to not catch the 7000 as taxable. Thank you
