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Retirement tax questions
The result suggests that the Roth conversion is at least partially taxable. Perhaps you have not yet entered your wife's nondeductible traditional IRA contribution for 2022 (or, if the contribution was made for 2021, you did not report the nondeductible contribution on the 2021 tax return so that the basis in nondeductible traditional IRA contributions would carry forward to 2022).
Examine the IRA Information worksheet to see your wife's basis in contributions and conversions.
Examine Form 8606 to see the calculation of the nontaxable and taxable amounts of the Roth conversion. If any of the Roth conversion is taxable and your wife was under age 59½ at the time of the distribution from the Roth IRA, any part of the distribution attributable to taxable Roth conversions held less than 5 years are subject to the 10% additional tax, but not income tax.