I followed the "backdoor ROTH IRA" instructions exactly, but they just aren't working. TurboTax is showing my $7000 back door conversion as taxable. I'm mystified as to why it isn't working... I have done this many years now but for some reason this year (2022 taxes) it just is not working. I can't find any errors in what I entered. Any ideas as to what I should check? I did the conversion entirely within 2022 and I had no traditional IRA basis at the start or end of 2022.
I have an inherited traditional IRA at a different brokerage than I have my own IRA. When it asks "what was the value of your traditional IRA at the end of 2022" I SHOULD enter the inherited IRA's value, right?
Worst case is I just overpay my taxes by a few thousand dollars, but would be very annoying to have that as my best solution. In fact, my IRA slightly dropped in value during the time it was in a traditional IRA, so that should count as a small loss. Is it possible to just go in and manually edit the tax forms TurboTax produces to correct this? I believe I just need to edit line 4b of Form 1040? Is that a reasonable solution?
