You probably failed to enter the non-deductible contribution in the IRA contribution section first so that it would become non-deductible basis in the IRA. If you do not do that then the entire amount is taxable.
What you are doing is called a "backdoor Roth".
Be sure that you indicate in the contribution interview that you want the contribution to be non-deductible if that question comes up.
Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
