Ethrex
New Member

Retirement tax questions

This did solve my problem, but I don't feel like it should have. When initially inputting my 1099-R back on Wages & Income it raised my taxes due (as stated in my initial problem). Then there is a separate section @macuser_22 outlined in Deductions & Credits. First -- I selected I have Traditional IRA contributions but no Roth IRA contributions (because I converted to Roth IRA, not contributed), please tell me if that is incorrect. Second, when I input my Traditional IRA contribution, it immediately showed I have less taxes due. This scares me because it makes me think TurboTax is assuming my Traditional IRA is deductible when it is not. Or maybe this is expected behavior because it balances with my earlier 1099-R form? If so that is a very strange way to have a user represent a non-deductible contribution to a Traditional IRA. If I continue through the wizard, it eventually hits a screen which says: "Your modified adjusted gross income (MAGI) is $xxx,xxx which puts you over the limit for IRA deductions. To deduct a contribution, you can't have a MAGI of over $121,000 while being covered by a retirement plan at work." But my taxes due was not increased (after if it was just previously decreased). Its such a strange user interface. Immediately after inputting 1099-R it increases taxes due but then says "you don't need to pay any extra taxes." Then immediately after inputting my Traditional IRA contribution it lowers my taxes due but says "you can't deduct your contribution." It is so confusing. @macuser_22 the steps I took closely follow the FAQ link you provided (<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4350747-how-do-i-enter-a-backdoor-roth-ira-conversion">https://ttl...>) so on one hand the numbers are probably correct - but on the other hand because of the terrible user interface I have no confidence in it.