Hi,
My spouse and I are married filed jointly. In 2021 we begun each making traditional IRA contributions, and then did the backdoor conversion to Roth IRA. However, during 2021 calendar year, we each did contributions for both previous year (2020) and current year (2021). I'm having trouble understanding if I entered correctly in Turbotax (download version).
My questions:
- Given all of the information below, do I need to do any amending of 2020's return, or do I need to file anything additional for 2020?
- Did I enter everything correctly for this years return, and do the forms look OK after going through questionaire?
Recap of situation:
- Contributions:
- February 2021:
- Me: 6K Traditional IRA contribution for previous year 2020, followed by backdoor conversion a few days later
- Spouse: Same as me
- December 2021:
- Me: 6K Traditional IRA contribution for current year 2021, followed by backdoor conversion a few days later
- Spouse: Same as me
- Tax forms / Previous Return
- 2020
- Return: It looks like last year's return includes form 8606 (one for each of us), showing 6k each in line 1 and 14, so I'm guessing when filing our 2020 return we must've indicated we were planning contributions later on (subsequently in 2021), as we did not make contributions during 2020 calendar year.
- Form 5498: ~ May 2021, we each received form 5498 for 2020 showing the 6k contribution made
- 2021:
- 1099-R: As expected we both received 1099-Rs showing:
- Line 1: 12k
- 2a (taxable amount): 12k
- Line 7: 2, with IRA/Sep/Simple checked
- What I entered into Turbotax
- During the interviews, I imported each of our 1099-Rs as is
- When asked during interview (separately for each of us), I chose
- When asked: "What did you do with the money." -> "Moved money to another retirement account" AND "I did a combination of rolling over converting, etc."
- When asked If i made and tracked non-deductble contributions, I said YES, and entered 6k as this was the amount I saw in 2020s 8606 line 14.
- When asked for Traditional IRA balance as of December 31, I chose 0 for both, as the money would've been converted to the Roth IRA by then.
- What it shows for Income Summary (after entering all information)
- IRA Distributions - nontaxable: $24,000
- 1040: shows 24,000 on line 4a, with 4b 0
- Form 8606 (Same for each of us):
- line 1 6,000
- Line 2 6,000
- Line 3 12,000
Thanks!
