Make sure of the following entries. You probably did not enter that your 2017 contribution made in 2018 created 2017 nondeductible TIRA basis. Keep in mind you may want to delete the 1099-R that reports the conversion and start over to make sure you are picking up on all of the screen instructions that follow:
- Enter in the information as reported on the 1099-R for this IRA in the main portion of the screen (box 2a should be blank, and "taxable amount not determined" should be checked, and box 7 probably has a code 2). Hit Continue.
- Next screen says Good News: You Don't Owe Extra Tax on This Money (this means there's no penalty, but the income still needs to be reported correctly to be removed from taxable income). Hit Continue.
- Next screen: Did You Inherit the IRA from This Payer? Probably No. Hit Continue.
- The next screen asks: What Did You Do With The Money From This Payer? First, select I moved the money...and then I converted all of this money to a Roth IRA account.
- After a few screens relating to Disaster Payments, you come to a screen asking Any Nondeductible Contributions to Your IRA? Click YES and Continue.
- Enter how much was your total Basis on December 31, 2017. This is the amount of total nondeductible contributions you've made throughout the years. This information is on Form 8606 from your 2017 tax return.
You will still have a few questions after this, but you will see the portion of your distribution that was from your nondeductible contributions will have been excluded from your taxable income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
