My MAGI for 2019 was too high to make full Roth IRA contributions (for 2019). In January of 2020, my wife and I both Recharacterized part of our 2019 Roth IRA contribution ($298 of mine, and $302 of hers) as a non-deductable Traditional IRA contribution that we then immediately converted back to our Roth IRA's. We both got 1099-R's. They are identical, except for the amounts, names, and account information. Neither my wife or I have any Traditional IRA's with a balance. The only Traditional IRA's we have are the ones we used to Recharacterize and the Convert in January of 2020.
My 2020 taxes, line 4b shows that I have $302 of taxable IRA distributions. When I look at the IRA Info worksheet, line 35 (Conversion contributions taxable at conversion), it shows $302 as taxable in the Spouse column. The Taxpayer column is blank.
This seems wrong. Is this a BUG in TurboTax? I'm pretty sure that neither of our recharacterization and conversion is taxable. Why would one be, but the other isn't?
