Hi,
I have a situation very similar to https://ttlc.intuit.com/community/retirement/discussion/backdoor-roth-with-rechar-and-conversion-mul... except I've not been able to figure out how to enter this into turbo tax.
Sometime in 2019: Contributed $2K to Roth IRA for Year 2019
2020 January: Realized 2019 income will be too high, so recharacterized $2K to IRA.
2020 January~April: Contributed $4K to traditional IRA and then backdoor converted to Roth for year 2019
Later in 2020: Contributed $6K to traditional IRA and backdoor converted to Roth IRA for year 2020.
As a result, I received 2 1099-Rs: One for $2xxx for the Roth IRA account (which I assume is for the recharacterization), and one for $14yyy for the traditional IRA (for the backdoor conversions).
Now when I go through entering the IRA contributions on turbotax, in the "tell us how much you contributed" screen it asks for how much I contributed in 2020 and I enter $6K (should I be entering $12K?). Which leads to the 1040 line 4b being $(14yyy-6000) = $8yyy, and hence my tax liability ends up being much higher than I'd hope. My understanding is that line 4b should be something like $(14yyy-12000) = $2yyy which is the capital gains I incurred between converting my IRA to Roth.
Could someone please help me in how to enter this properly in Turbo?
cc @dmertz apologies for the tag but since you seem to know how to deal with such situations would really appreciate any thoughts.
