Just frustrated, want to go to a tax consultant. I know backdoor ROTH is tax free because my contributions were after tax since I am not eligbile to take deductions on my contributions to Traditional IRA and I dont have any kind of IRA other than this for a week or so after which I move the money to ROTH IRA. Here are the details:
1) Federal Refund (In Progress): $3,345
2) Wages and Income - Retirement Plans and Social Security - IRA, 401(k), Pension Plan Withdrawals (1099-R) - Visit
3) Did you get a 1099-R in 2021? - Yes
- Get ready to be impressed - Continue
- Lets import your tax info - Change how I enter my form
- How do you want to enter your 1099-R - Upload it from my computer - Continue
- Upload your 1099-R - Browse - Choose your file - Hit open - Wait for 45 seconds
- Review your 1099-R Info - Review
- Who does this 1099-R belong to - Joe - Continue
- Who gave you 1099-R
Who paid you
Address
Payer TIN
- CONTINUE
- Enter your 1099-R details from National Financial Services LLC as agent forFIDELITY INVESTMENTS
Box 1 - Gross distribution: $7,000
Box 2a - Taxable amount: $7,000
Box 2b - Taxable amount not determined box is checked, Total distribution is checked
Box 7 - Distribution code : 2, IRA/SIMPLE/SEP box is checked
- CONTINUE
- Good news! You don’t owe any extra taxes, BUT my FEDERAL TAX REFUND IS REDUCED TO $1,665
- CONTINUE
- Do any of these situations apply to you? - None of these apply - Continue
- Tell us if you moved the money through a rollover or conversion - I converted some or all of it to a Roth IRA - Continue
- Did you convert all of this $7,000.00 (Box 1) to a Roth IRA? - Yes, all of this money was converted to a Roth IRA - Continue
- Here's your 1099-R info - CONTINUE
- Have you ever taken a disaster distribution before 2021? This includes repayments of prior year disaster distributions in 2021. - No - Continue
- Any Nondeductible Contributions to Joe's IRA?Let us know if Joe made and kept track of any nondeductible contributions to Joe's traditional IRA from 2020 or prior years. (This is not common.)
Most people do not make or track any nondeductible contributions to their IRAs. | | Yes, Joe made and tracked nondeductible contributions to Joe's IRA |
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- CONTINUE
- Let's Find Your IRA Basis - Joe's total basis as of Dec 31st, 2020 is 0
- Continue
- Value of Joe's Traditional, SEP, Simple IRAs on Dec 31st, 2021 - 0
- Continue
- Tell Us The Value of Joe's Roth IRA - Enter the value of Joe's IRA as of Dec 31, 2021 - Include any contributions made after Dec 31st 2021 that were designated for 2021 - 21,264 (This is confusing)
- Continue
- Explain Your recharacterization - In August 2021, Contributed after tax dollars to Traditional IRA for 2021 and move it to ROTH IRA - Done
I am back to WAGES and INCOME. I started with a Federal Refund (In Progress): $3,345 and ended with Federal Refund of $1,665
Am I doing anything wrong? Where am i steering it incorrectly. Please advise
