I do Backdoor Roth Conversions every year, but this year is a bit more complicated. This year, I had a 401k which I rolled over to an IRA (pre-tax dollars). I then did a ROTH IRA conversion on all of those funds (submitting an estimated tax payment on the conversion). As such, my total IRA balance for the end of this year is $0, the pro-rate rule should not apply and I've paid all necessary taxes to convert my IRA to a ROTH IRA.
My IRA contribution for the backdoor ROTH conversion was $6500. My MAGI is over the IRA deduction limit, so my entire contribution by definition must be all post-tax dollars (which, it is). The total value of all of my Traditional IRAs on December 31st, 2023 was $0, the pro-rata rule should not apply either.
My 1099-R for my backdoor ROTH conversion shows the gross distribution amount ($6500.80) as the taxable amount, with "taxable amount not determined" checked. This is fine, but Turbo Tax is not correctly determining the taxable amount to be $0.80 rather than the full $6500.80.
I've looked through several posts & guides on submitting a backdoor ROTH conversion, but it is still showing as taxable. I previewed my 1040 and I can confirm that it's listing my entire contribution as taxable currently.
How do I get turbo tax to recognize that my IRA contribution, and subsequent backdoor ROTH conversion, is not taxable on the full $6500.80?
Thanks!
