For some reason my 1099R is being taxed, while my wife's is not. The only difference was the timing of the contributions as follows:
ME
In 2019, I contributed $5500 (I didn't realize the maximum was raised to $6000)
In February 2020, I contributed another $500 for tax year 2019
In February 2020, I contributed $6000 for tax year 2020
WIFE
In 2019 I did not contribute to her account
In February 2020, I contributed $6000 for tax year 2019
**I intended to contribute more in 2020 for tax year 2020 but we didn't get the funds in time so we are going to contribute the $6000 for 2020 in February 2021, and then another $6000 in 2021 for tax year 2021**
When I enter this into Turbo Tax, her 1099R doesn't change our refund due at all, but when I enter mine, our refund goes down by over $1000. Here is the info from the IRA worksheet (Blank lines are skipped):
Line 1 - 500 (Me); 0 (Her)
Line 2 - 0 (Both)
Line 3 - 500 (Me); 6000 (Her)
Line 7 and 9 - ***** (Me); 5500 (Her)
Line 12 and 17 - 500 (Me); 0 (Her)
Line 27 - ***** (Me); 0 (Her)
Line 28 - 5500 (Both)
Line 29 - ***** (Me); 0 (Her)
Line 30 and 32 - 5500 (Me); 0 (Her)
Lines 52-58 are repeats of 27-32
The ***** are amounts over $10K that I didn't want to show here. Those were from converting all of my rolled over 401K from prior jobs and paid the appropriate taxes on those so that I could do the Backdoor Roth Conversion every year after.
What is happening in Turbo Tax that is causing my Roth Conversion to be taxed which is incorrect, but my wife's to not be taxed which is correct?
Thanks!
