- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Issue 1: No, on your 2020 return it is correct that TurboTax asks "Let us know if [taxpayer] made and kept track of any nondeductible contributions to [taxpayer's] traditional IRA from 2019 or prior years." since any 2020 nondeductible contributions have to be entered in the contribution section. Here you only enter the basis amount if you had prior to 2020 nondeductible contributions and had filed Form 8606. If you did not have any nondeductible contributions in 2019 or prior then you will enter $0 as basis.
Issue 2:
Please make sure you entered your 2021 contributions and made them nondeductible:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution?”
- Enter the amount you contributed
- Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
- On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if your income is too high and you have a retirement plan at work then this question won't come up and TurboTax will make it automatically nondeductible).
Please make sure to enter your $6,000 basis from the 2020 contribution under step 8. Yes, the $0 for the total value is correct since you converted the balance to Roth right away in 2021.
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Click "Continue" and enter the information from your 1099-R
- Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
- Add your spouse's 1099-R and repeat step 4.
- On the "Your 1099-R Entries" screen click "continue"
- Answer "yes" to "Any nondeductible Contributions to your IRA?" since you had any nondeductible contributions in prior years.
- Answer the questions about the basis and value
- Answer "no" to "Any nondeductible Contributions to your IRA?" for your spouse since your spouse did not have any nondeductible contributions left in the IRA from prior years.
If this doesn't help you might have to delete your contributions and 1099-R entries and reenter it.
**Mark the post that answers your question by clicking on "Mark as Best Answer"