@dhuynh44 wrote:
Hi,
An update; after doing what you guys told me the $1000 I was going to be taxed for a non-deductible contribution of my traditional IRA went away! Thank you!
However I had one more question. I also contributed about $1000 to a Roth IRA straight up without converting from a traditional. When it asks me during “deductions and credits” if I contributed to a Roth IRA for 2020, here I input the $1000 correct? When I do this, it adds about $70 in additional tax. Why is this when I put in after tax dollars? Thank you,
The only way a Roth contribution would be taxable is of the tax is an excess contribution penalty if you contributed more then the allowable amount or more then your taxable compensation.
The Roth IRA contribution interview will tell you the reason.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
