I did the mega backdoor Roth IRA. Line 5b on my 1040 that Turbotax calculated contains a number that doesn't make sense to me. It seems wrong to me.
I'll use fake numbers to demonstrate the problem.
My 1099-R for my 401k has (fake numbers):
Box 1: $10,020
Box 2a: $12
Box 5: $10,008
Box 7: G
I entered that data into Turbotax. Turbotax then asked me how much I contributed. According to my pay stubs, that's $10,000 (again, a fake number), so I entered that.
Then Tubotax generated a 1040 that has $32 on line 5b. Why $32?
I generated a pdf with "Include government and TurboTax worksheets (optional)" to try to find out. On the "Form 1099-R Summary" part, in the "Pensions and Annuities" section, it says:
22 Total gross distributions from box 1 of Form 1099-R: 10,020
23 Amount of line 22 converted to a Roth IRA: 10,020
25 Gross distribution transferred to Form 1040, line 5a (if partially taxable) or line 5b (if fully taxable): 10,020
26 Taxable amount in box 2a, Form 1099-R: 12
31 Taxable amount of Roth IRA conversions: 20
32a Taxable amount of distributions: 32
32d Taxable amount transferred to Form 1040, line 5b: 32
All other rows are 0.
So it added 12+20 to get 32. Why did it add 12+20? I think the 12 is already included in the 20. There's no reason to add them together. I think line 5b on my 1040 should be 20. What can I do to force Turbotax to generate a 1040 with 20 on line 5b?
I'm using Turbotax Online Premium (according to my receipt). For some reasons that's not in the edition drop down here.
