Last year we did our first backdoor Roth on April 1, 2023 for the tax year 2022. We contributed $6,000 for my wife and me. This year I received a 1099R for 2023 that lists the full amount of my contribution $6,552 ($552 gain in traditional IRA) that was converted to the Roth. It lists the full $6,552 as taxable income. We have tried following the backdoor Roth instructions but continually get a huge additional penalty of $1600 on our taxes.
I have seen articles about amending 2022s returns. Am I not supposed to enter this information for our 2023 taxes? We have not contributed to an IRA for 2023 but are planning to do so before tax day this year. We are at a loss and I have no idea what to do. None of the instructions are working and I am worried we are going to get hit with huge penalties. PLEASE HELP
