DanaB27
Expert Alumni

Get your taxes done using TurboTax

First, 4a (total IRA distribution) will only show $7,000 from your conversion since your spouse's conversion didn't happen until 2022 (her conversion will go on your 2022 tax return). Do not enter a Form 1099-R for your spouse on your 2021 tax return.

 

For your spouse, you will only enter the nondeductible traditional IRA contribution (assuming your spouse's traditional IRA was $0 before the contribution for 2021):

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “IRA contributions”
  3. Click on “Jump to IRA contributions"
  4. Select “traditional IRA
  5. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  6. Enter the amount you contributed
  7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “No” since your spouse didn't have a nondeductible contribution before this tax year.
  9. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a screen saying $0 is deductible).

 

When you look at your spouse's Form 8606 you will have on line 1 the $7,000 contribution for 2021 made in 2022. On line 14 should be $7,000 as the basis. Nothing should be in part II for her since she didn't make the conversion until 2022.

 

@trbelair

 

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