Retirement tax questions

Here’s how to enter this in TurboTax

1. If you already entered your 1099-R, you still need to go back and enter the original contribution. Without this, Line 1 will stay at $0. 
2. Go to Federal, then Deductions & Credits. Find Retirement and Investments, and choose Traditional and Roth IRA Contributions.  Check the box for Traditional IRA.
3. Important: When asked if you “recharacterized” or “switched” the money to a Roth IRA, select NO. Many users choose “Yes” here, thinking it means a conversion, but recharacterization is a different tax action. Selecting “Yes” will erase your Traditional IRA basis.
4. Enter the amount of your 2025 contribution (for example, $7,000).
5. On the “Choose Not to Deduct” screen:  

• If your income is high, TurboTax may mark your contribution as non-deductible automatically.  
• If not, you’ll see the question: “Do you want to make this contribution non-deductible?” Select YES.

This step ensures the amount goes to Form 8606, Line 1.

1. Now that Line 1 has a value, you need to make sure the 1099-R (Wages & Income) knows to use that "basis" to offset the tax.
2. Go to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R).
3. Edit your 1099-R. Ensure the box "IRA/SEP/SIMPLE" is checked.
4. Continue through the follow-up questions until you see: "Tell us if you moved the money through a rollover or conversion."
5. Select "I converted some or all of it to a Roth IRA."
6. On the subsequent screen, confirm "Any nondeductible contributions to your IRA?" is marked YES.

If this is entered correctly as noted, you should have amounts in Line 1,3,13 on the 8606 and 0 in Line 18, making this contribution non-taxable.