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Level 2
posted Mar 13, 2022 12:32:01 PM

About 1099-R

Hi,

Through JP Morgan I invested 6000 in ROTH  IRA and  I received 1099-R  with

Box 2a  ==> $6000

Box  2b ==>  both "Taxable amount not determined" and "Total Distribution" ticked

Box 7 : code is 2   and IRA/SEP/SIMPLE is ticked

(Most of the other boxes are empty)

 

I am doing taxes in TT and currently I owe nothing.  But, if enter 1099-R form, now I owe ~$1200 in Federal Tax. I do not understand  as why post-tax ROTH investment  makes me Owe Federal tax. 

I am fresh graduate with new job and  I thought Roth IRA will help me in my taxes. But  it looks more counter-intuitive.  Can you please  help me understand as why now I owe money to IRS ?

 

Thanks

tp

0 1 319
1 Best answer
Expert Alumni
Mar 13, 2022 1:18:42 PM

It seems as if you moved funds from a traditional IRA to Roth IRA since you received Form 1099-R with the IRA/SEP/SIMPLE box checked. This is a conversion and is taxable unless you had nondeductible contributions in your traditional IRA (basis).

 

To enter a conversion:

  1. Click on "Search" on the top right and type “1099-R”
  2. Click on “Jump to 1099-R”
  3. Click "Continue" and enter the information from your 1099-R
  4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”

 

 

1 Replies
Expert Alumni
Mar 13, 2022 1:18:42 PM

It seems as if you moved funds from a traditional IRA to Roth IRA since you received Form 1099-R with the IRA/SEP/SIMPLE box checked. This is a conversion and is taxable unless you had nondeductible contributions in your traditional IRA (basis).

 

To enter a conversion:

  1. Click on "Search" on the top right and type “1099-R”
  2. Click on “Jump to 1099-R”
  3. Click "Continue" and enter the information from your 1099-R
  4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”