It is likely that you are missing the basis of the nondeductible traditional IRA that was from prior years, since $15,000 is more than the allowable contribution in one year. Please note that if you are converting a Traditional IRA that you deducted in the past, there is going to be tax on this amount (but not the 6% penalty) since it was never taxed before. If the IRA was a nondeductible Traditional IRA, make sure you enter the amount you contributed to the Traditional IRA in the current year and prior year(s).
- Go to Deductions & Credits
- On the Your tax break screen, locate and select the Retirement and Investments section, then select Start or Revisit next to Traditional IRA and Roth IRA.
- Check the box for traditional IRA.
- Continue and enter the 2025 Traditional IRA contributions (pre-conversion)
- Continue and enter the amount of nondeductible IRA contributions to your traditional IRA from 2024 or prior years on the screen Traditional IRAs where it asks for this information.
