dmertz
Level 15

Retirement tax questions

Your recharacterization was reportable with your 2017 tax return.  To do that you should have edited the code 7 2017 Form 1099-R, indicated the you converted the entire amount to Roth, then on the next page, you should have indicated that you moved some or all of the money back to a traditional IRA, then indicated that you recharacterized the entire amount.  Then after clicking the Continue button on the Your 1099-R entries page, TurboTax would have eventually asked you to provide an explanation statement where you would have indicated that you had the entire $89,598.78 that you originally converted recharacterized back to the traditional IRA, resulting in a gain-adjusted transfer of $92,237.77 to the traditional IRA.  This would have resulted in the original conversion NOT being included in taxable income on your 2017 tax return.  The $89,598.78 would have been excluded from 2017 Form 1040 line 15b.

If you did not already do this on your 2017 tax return, you must amend your 2017 tax return to correct it in the manner.  Amending will get you a refund of the tax you paid on the conversion not previously reported as recharacterized. 

You can ignore the code R 2018 Form 1099-R since it is covered by the explanation statement that you provided with your 2017 tax return or the explanation statement that you will provide with the amendment of your 2017 tax return.

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