Hi,
I am still struggling with this. See my previous post for details.
At the end of Dec 2020, I had no T-IRAs but had a Roth which I recharacterized in Mar 2021. So what should i enter to the question on:
"Did you make a contribution to traditional IRA in 2020"- should this be Yes or No (i made a roth contribution by mistake and recharacterized)
"value of all Traditional IRA as on Dec 2020"- I entered zero. is this right?
Outstanding recharacterizations- I entered -6000 and my tax amount went up. Not sure why it would for my 2020 Roth contribution which was recharacterized in Mar2021.
But when I entered the distribution from my 1099-R, which has a total of 11590 (mix of deductible and non deductible IRA conversion) , it said I owe no tax. That does not sound correct since I had a 5590 conversion of deductible IRA (out of 11590). Should I not see 5590 added to my income?
Instead i see that it calculates the non taxable part differently and says that it is 7907 non taxable. How can it reduce tax on the deductible IRA contribution to Roth?
And do i need to create a form 1099-R for 2020 for the recharacterization?
Thanks for your help.
