I entered the 1099-R from Vanguard and contacted Vanguard when I found the non-deductible portion was being taxed. Vanguard said that it must be a Turbo tax problem since the form they sent is correct.
Entered the 1099-R with Box 1 and Box 2a contribution of $7000 and Box 7 code = 2
> Based on your Box 7 Entry you do not need to pay any extra taxes on the money taken out of your account
Here is what I selected subsequently
> Moved the money to another retirement account
> Converted all this money to a Roth IRA account
Answered ‘Yes’ I made and tracked non deductible IRA from 2018 and prior years (have done this back door Roth conversions in prior years without a problem)
> Total basis on Dec 2018 = 0
> Value of traditional SEP Simple IRAs on Dec 2019 = 0
The above steps taxes the non deductible IRA amount
Turbotax IRA Worksheet shows
Line 590: ‘2019 Conversion contributions taxable at conversions” = $7000
Line 60: ‘2019 Conversion contributions not taxable at conversions” = 0
