On May 4, 2020 I made a tax-year-2020 $7,000 nondeductible traditional IRA contribution, and on the next day re-characterized it as a Roth IRA contribution.
I've spent several hours trying to get Turbotax Home & Business 2020 to recognize the traditional IRA contribution as nondeductible, but line 1 of form 8606-T remains blank. I've also tried entering the value 7,000 on line 1 of the form without success.
I've read several posts about reporting a backdoor Roth IRA contribution in TurboTax, to no avail.
Here are my EasySteps:
Personal>Deductions & Credits>Retirement and Investments>Traditional and Roth IRA Contributions
Select the kind of IRA(s) you own or will contribute to for 2020: Traditional IRA, Roth IRA
Is This a Repayment of a Retirement Distribution?: No
Tell Us How Much You Contributed: Your total 2020 traditional IRA contributions: 7,000; How much between Jan 1, 2021 and Apr 15, 2021: 0
Tell Us How Much You Transferred: Amount Switched from a Traditional IRA Contribution to a Roth IRA Contribution: 7,000
Your IRA Explanation Statement: (entered a statement)
Enter Excess Amount: Your Prior Year Excess IRA Contribution: 0
Any Nondeductible Contributions to your IRA from 2019 or prior years: Yes [I made a similar re-characterization in tax year 2019 in the amount of $5,476, but did not use Turbotax last year]
Let's Find Your IRA Basis: Total Basis as of Dec 31, 2019: $5,476 [from line 14 of my 2019 Form 8606]
Roth IRA Contributions: Did you make a Roth IRA contribution for 2020? No [since it says not to include the $7,000 that I originally contributed to a traditional IRA but later converted to a Roth IRA]
Withdraw from Your Roth IRA Before 2020? No
Enter Prior Year Roth IRA Contributions: Roth IRA Contributions prior to 2020: (entered value)
Tell Us the Years: 2019
Enter 2019 Conversions: 2019 Taxable Conversions: 0; 2019 Nontaxable Conversions: 5,476
Adjust Roth IRA Due to Divorce: No
Enter Excess Contributions: Your Excess Roth IRA Contributions for Prior Years: 0
Tell us the Value of your Roth IRA: (entered value)
Outcomes: Your Roth Contribution was Too High
You Currently Have a Penalty: Contribution Withdrawn Before Due Date of Your Return: 0
Your IRA Deduction Summary: Don't qualify; deduction is zero.
I've also tried ignoring the 2019 re-characterization, but that did not help me get a non-blank value in line 1 of form 8606-T.
Any help would be appreciated, but it would be ideal if you could first try the steps above.
