In 2018 I contributed $5500 to a Roth. In Jan 2019 I contributed $1200 to my Roth. Early 2019 while doing my 2018 taxes TurboTax told me that my MAGI was too high to contribute to Roth. I re-characterized the $5500 (total rechar = $5,694.16 per 2019 1099-R box 7=R) to a newly created TIRA. And converted the entire TIRA to the Roth (Total converted $5,749.03 per 2019 1099-R box 7=2). The TurboTax generated Form 8606 for 2018 had $5500 on lines 1, 3, and 14.
In March 2020 while doing my 2019 taxes, TurboTax told me that my MAGI was again too high to contribute to the Roth. I re-characterized the $1200 (total rechar = $1,135.44 per letter from Fidelity) to my TIRA. I also contributed another $4800 (done in March 2020 for 2019) non-deductible straight to the TIRA. And then converted the entire TIRA (~$5935) to the Roth.
The 2019 TurboTax generated form 8606 has the following:
Line 1: 6000
Line 2: 5500
Line 3: 11500
Line 4: 4800
Line 5: 6700
Line 6 – 12 are blank
Line 13: 5749
Line 14: 5751
Lines 15a,b,c: 0
Line 16: 5749
Line 17: 5749
Line 18: 0
I was thinking that I would need to owe taxes on the gains $5749-$5500= $249. However, the 2019 TurboTax generated form 8606 line 18 says there is $0 taxable amount. Is that correct? Also, why would lines 6-12 be blank? When I fill out form 8606 with what I think should be in lines 6-12 I get the following:
Line 6: 1200
Line 7: 0
Line 8: 5749
Line 9: 6949
Line 10: .964
Line 11: 5543
Line 12: 0
Line 13: 5543
Line 14: 5957
Line 15a,b,c: 0
Line 16: 5749
Line 17: 5543
Line 18: 206
This shows some tax owed on line 18, but still seems off. Can anyone let me know what I am doing wrong or why TurboTax says no tax is owed?
Thank you.
