Yesterday we started a new file without transferring any information forward from a previous return so as to minimize the problem. We are both retired and have pensions. We have not worked in 14 years, so we haven't been able to contribute to IRAs from work. Last year we took $50,000 from my Spouse's IRA and moved it her Roth IRA. We subsequently took out $15,000 and put it in our savings account.
On page 2 of our Federal IRA worksheet:
Line 35 Conversion contributions taxable at conversion....50K
Line 48 Distributions from 2021 conversions taxable at conversion ... 15K
Note the difference is 35K, which doesn't show up anywhere..
On our Schedule CA (540) 2021 side 5, Part II Adjustments to Federal Itemized Deductions:
Line 21 Other expenses - investment, safe deposit box, etc. List type... IRA 21 35,000
This should not be a deduction. And we don't know if we are doing something wrong, or the if Turbo Tax (TT) is at fault. Our brokerage information was uploaded from our broker. We really didn't have any questions concerning this "IRA" deduction .
I think for some reason TT is subtracting the $15K from the $50k and is treating the difference of $35K as a deduction. Based on how I described our IRA withdrawals above, are they located correctly on the Federal IRA worksheet?
We do these withdrawals every year and have not experienced this problem before.
Thanks for any help you may be able to provide.
George
