Thank you for this quick response and certainly that answers how I should report the roth conversion for federal taxes.
My original post/question is about Roth IRA basis. Over the years I made non deductible contributions to Traditional and Roth IRAs. I also tracked basis for both Traditional and Roth IRAs using TurboTax. After the conversion the Traditional IRA basis should be zero/blank. I understand and that seems to be fine. My question/concern is the Roth IRA basis that was there before the conversion seem to be lost in TurboTax.
After the conversion is it right to assume the full converted amount (basis and taxable amount) should be added to my prior Roth IRA basis?
I also noticed TurboTax does not seem to automatically apply the Traditional IRA basis while calculating the taxable part of the converted amount for MA state taxes. I just noticed this issue with my 2020 state filing. Looks like I need to file a state amendment to get back the additional taxes I paid.
As I did backdoor roth conversions multiple times over multiple years what should I be entering for the following 2 MA state tax questions?
Total contributions previously taxed by Massachusetts (assume I should enter the Traditional IRA basis here)
Total distributions received in previous years (what does it mean by previous years? Since I am filing taxes for 2021 should it be for years 2020 and before? Should I enter the Roth conversion distributions from 2020 or nothing at all?)
I think Turbotax MA state return product/software should be fixed to take into account Traditional IRA basis automatically just like Federal return is doing.
