I think there may be a bug in how TT is calculating the tax on the conversion to Roth IRA for a spouse. TT is not handling a second 1099-R and the conversion to Roth IRA correctly.
I have been using the Roth IRA conversion for several years and I have come to know the process and worksheets and forms. This year first I imported our 1099-R forms from our financial institution. I completed the step-by-step prompts, and said that all of our 1099-R distributions ($7000 each) were converted to a Roth IRA account. On the 1040 form, only $7000 was listed in the non-taxable column and a large portion of the other $7000 was listed in the taxable column. I repeated the import several times, being careful to note when TT was designating the 1099-R as mine vs my wife's. Same result on the 1040. Then I deleted the imported 1099-R forms, and entered them manually for each of us. Same result on the 1040.
I hope this helps you, @mckennate1
Then I went to Forms view, to form 8606-S (spouse) and noticed her $7000 was not entered in line 1. I backtracked to the IRA Contribution Worksheet, and noticed that Line 1 under the Spouse column was blank. I entered $7000 in Line 1 under spouse, and TT populated the rest of the worksheet appropriately. Then I went to the 1040, and saw that all of the $14,000 was listed under the non-taxable column, and $0 in the taxable. (I did the manual calculations on forms 8606 using cost basis to verify that our taxable amounts are indeed $0.)
