I'm putting in backdoor Roth conversions for the 2024 tax year using 1099-Rs I've received. I've done this in previous years without impacting refund amounts. This year, I can't figure out what I'm doing wrong -- I've followed the help article "How do I enter a backdoor Roth IRA conversion?" step-by-step.
Two 1099-Rs, one for me and one for my wife.
- $7000 contributed to Traditional IRA for each ($14000 total)
- Both converted fully to Roth IRAs with $0 basis and $0 in Traditional at year-end, marked as non-deductible
- $14 taxable (Total converted was $14014 due to interest in Traditional accounts prior to conversion)
When all is said and done (first inputting in Deductions where I selected Traditional for both my wife and me, and then inputting into Income for the conversions. I've tried it in the other order as well), the Federal refund decreases by $6 and the state (NJ) refund decreases by $1258. Note in the Deductions flow I've only checked Traditional as this is what is mentioned in the help article, though I've also tried by checking Roth in addition where I then answer that there are $0 in Roth contributions, which has the same end result.
As the contributions were made with taxed money and are non-deductible, with $0 basis, I'm not sure why there is any impact at all for either refund.
