1099-R reports tax on already after tax distribution

coolbean · Mar 9, 2023 9:38:22 PM

<P>I contributed $6000 to traditional IRA in March 2021 and another $6000 in Aug 2021, thinking that the first $6000 counts toward the 2020 limit. Today, I realized I forgot to report my 1099-R on my 2021 tax. While I was amending it, I found that 1099-R says my backdoor IRA distribution has $12000 taxable even though I contributed to traditional IRA with after-tax money. When I entered 1099-R into turbotax, it says "Good News: You don't owe extra tax on this money", but after I clicked "continue", the federal tax due went from $0 to $2100. It seems to think I have over contributed. Where did I make a mistake?</P>

Thank you for the quick reply!

If I amend the 2023 tax return, would 1040 c and form 8606 be submitted on behalf of me? Or would I have to print the 1040x and 8606 and mail them out separately?

Really appreciate the help!