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Yes, that's correct. Assuming you enter this income under other common income, and then selecting that radio button, the program will report the entry as income on Line 1D on the 1040 but then will offset on line 8S on Schedule 1.

I entered it manually the first time, and I still deleted it and entered it again. The result was the same.     You want me to call "support?" You mean you want me to waste my time and energy talking to the automated system?    Thanks!

But how do you enter it into the Turbo Tax program? I entered it through creating an additional 1099-R. However, my understanding is the IRS requires an explanation be attached. I cannot find anywhere to enter an explanation.

Yes, but the method varies.   If your employer sent a copy of your W-2 to the IRS, then you can file using the numbers on that W-2, even if they never sent you the W-2 itself.   Go to Get Transcript. See if you can download your transcript online. You want the Wage and income transcript.    Then when you receive the numbers of your W-2, in the TurboTax interview, use these numbers.   If your employer did not copy the IRS on your W-2, then you will have to use a substitute W-2.   To use the substitute W-2, please see this TurboTax FAQ. You will have to guesstimate the numbers as best you can using you pay stubs.   Note, using pay stubs is not a particularly accurate way of doing this, for various reasons...but if that's all you got, use it.    

Look, I hate to say it but you are stuck between a rock and a hard place. You can just not report it and wait to see if the IRS notices it. Then they have to send you a letter explaining the error. What bugs me is that if they have the same K1 data somewhere, why cant they just figure it out. I have no idea what the boxes mean. Thats what TurboTax is supposed to do: Take the input data from your K1 and send it in. IF there is a huge discrepancy in the amount of taxes owed, then that is the IRS's problem to report it. If the Adjusted Basis and Fairmarket Value are the same. Why do we need this 7217 business. Printing out the entire tax return (in my case that would be like 3 New York City Phone Books) just to attach a form that doesnt even change the final taxable amount is nuts.  I'm not recommending this, but it make sense to intentionally make an honest mistake and miss the fact that K1 box 19 had a letter C in it at all.  

Basically, a Back Door Roth is a two-step process.  First, enter the Non-Deductible Contribution.  Then, report the 1099-R and say Yes, converted to Roth.  You may want to delete your previous entries (or forms) and if you're using TurboTax Online, clear your Cache and Cookies.  Then step through those interview sections again.   Here's more detailed instructions on How to Enter a Back-Door Roth Conversion.   @ksangler 

The reason TurboTax isn't asking for your basis in a simple "box" is that for a rental, your basis isn't a single number—it's a combination of your original purchase price, land value, and 9 years of accumulated depreciation.   To fix the "20% on the full price" error, you must "retire" the asset. Here are the exact steps for the TurboTax Desktop version: Step 1: Report the Sale Go to the Federal Taxes tab -> Wages & Income. Scroll down to Rental Properties and Royalties (Sch E) and click Update. Click Edit next to your specific rental property. On the screen "Review Your [Property Name] Info," click Edit next to the Property Profile. Check the box that says: "I sold or otherwise disposed of this property in 2025." 6. Follow the prompts until you are back at the Rental Summary screen. Step 2: Enter the Basis (The "Assets" Section) This is where 99% of users get stuck. You don't enter the sale under "Expenses"; you enter it under Assets/Depreciation. Scroll down to Assets/Depreciation and click Update. You will see a list of assets (e.g., "House," "New Roof"). You must "sell" each one individually. Click Edit next to the main asset (usually labeled "House" or "Residential Rental Property"). Verify the Cost and Cost of Land shown here. This is your Basis. If these are wrong or $0, fix them here. On the screen "Did you stop using this asset in 2025?", select Yes. Enter the Date of Sale. Step 3: Enter the Sales Price & Closing Costs After entering the date, TT will ask for the Sales Information.  Sales Price: Enter the gross sales price from your 1099-S. Sales Expenses: Enter your closing costs, commissions, and legal fees here. Land vs. Building: TurboTax will ask you to split the sales price between the land and the building. A common method is to use the same percentage as your original purchase (e.g., if land was 20% of the cost, assign it 20% of the sale price). Step 4: Verify in "Forms Mode" Since you are on Desktop, verify the math immediately: Click the Forms icon in the top right. Open Form 4797 (Sale of Business Property). Check Line 20 (Cost or other basis). If this matches your original purchase price plus improvements, the "full sales price" error is fixed. Check Line 22 (Depreciation allowed). This should show the 9 years of history TT carried over. Note on your 20% Payment: When you sent that check to the IRS, you made an "Estimated Tax Payment." To get credit for it, go to Deductions & Credits -> Estimates and Other Taxes Paid -> Federal Estimated Taxes. If you don't enter it there, TT will think you haven't paid a dime yet!

This is 100% my same problem. TurboTax forcing an input for this section to be completed. Extremely aggravating. Hope it’s fixed asap otherwise I’ll have to begin using another service. Feels like this happens with something every year.