Backdoor Roth IRA tax withhold, now 8606 form is not adding up

[shiyi11]

Messed backdoor roth ira. The correct way is to convert and select not withhold tax. But someone in my family messed up and clicked yes to that question for their backdoor.

Now the 1099 is saying

• Box 1 = $7240
• Box 2B = X,
• Box 4 = $724 withhold.
• Box 7 = 2X

After playing around with Turbotax, I got it to work in the Taxable IRA Distribution worksheet (8606 has a note saying Using such worksheet).

Line 1, 7000 (into Traditional)

Line 2, Previous year basis 0.

Line 4, $6 (End of year left with 6 dollar)

Line 5, $724 (messed up the 10% withholding)

Line 6 $0 (this is where I think either the Turbotax software or 1099R is wrong) It should not be 0, it should be ($7240-$724)

I cannot get it to work, I wish I can just type it in, but the button take me back to 1099R, not allowing me to edit this.
At the end it said I have 0 taxable, which is not true.

I should be paying around 7240 - 7000 = 240 worth of taxable, rough math not counting that 6 dollar left over.

[fanfare]

L:ine 6 is Zero,  or $6 if six dollars was left behind. That doesn't go on Line 4.

The amount converted Line 8 and Line 16 is $6516,   $724 went to the IRS.

See line 1 and line 2 of Form 8606 for the basis, if any, that will be involved in calculation of the nontaxable portion.

@shiyi11 

[shiyi11]

solved.

Said family member messed up the questionnaire, when it asked which of 7240 you converted into Roth IRA, and which of 7240 you rollover.

they put 6516 into rollover, but as soon as I correct into convert into Roth.

Everything looks right now, about 244 taxable. as I expected.

The 1099R was correct and Turbotax software is correct too.

The user is wrong.

[shiyi11]

dear sir, I think you are talking about 8606, which I referred to, but the turbotax i was using have a * on 8606 and said all the math referred to worksheet, the line numbers I am referring to are from the worksheet.

[fanfare]

Using Form 8606 the tax I got was $246, It doen't matter that you used the worksheet and I did not. TurboTax seems to like that worksheet.

@shiyi11