I want to make sure I am filing this correctly. We are married filed jointly and in the 22% bracket. My husband moved all of his traditional IRAs over to a Roth IRA. We got a 1099-r and the filing prompts on turbotax are confusing me .The gross distribution and taxable amount are the same (~55,000), taxable amount not determined and total distribution boxes are checked. Capital gain is 0. Federal income tax withheld is around $7000. Distribution code is 2 and IRA/SEP/SIMPLE box is checked. Also state taxes withheld are around 1700. Everything else is a 0. So we already paid ~15% taxes for this. It also says after I enter the 1099 that we do not need to pay extra taxes on this on the next turbotax screen. However, it continues with more prompts and no it is not inherited and no its not from employer SEP. If I check the box that he did a combination of rolling over, and converting it takes away ~$12,000 from our return. If I click he rolled over all his money and then say he added the 8,700 (taxes withheld from by bank on our behalf from the original distribution) of his own money, and only ~$46,600 was rolled over, then our tax credit is only affected slightly. I assumed that since its traditional to Roth I would pick the converting option and since we already paid some taxes I would never expect to owe $12,000 more. Did I do this right by picking the rolled over, or am I missing something?
