I'm trying to account for a backdoor ira. I had a distribution of $10422 of which $7000 went to the backdoor IRA. When I entered this into turbotax, turbox tax created an untitiled 1099-R. Is this supposed to happen and if so, what do you do with the untitled 1099-R?
You should not have an extra Form 1099-R. With a backdoor Roth, you basically start the money off in a traditional IRA, transfer it to a Roth IRA and then pay the taxes you owe on that money now so that you can let your investments grow tax-free and enjoy tax-free withdrawals later. It's that simple and it's perfectly legal.
Enter the Conversion from a Traditional IRA to a Roth IRA following the steps below to complete this portion of your tax return.
Carefully answer all the questions about the Roth and COVID. If you completed your 1099-R entry using these steps you should be confident about your tax return for federal. There should be no premature distribution penalty.