If you have unexpected taxable income for a Roth IRA conversion, you can check how TurboTax calculated the values in the online version by downloading your forms with worksheets:
- Tax Tools > Print Center in the left side bar
- Click Print, save or preview this year's return
- Check 2024 Federal return
- Check Include government and TurboTax worksheets (optional)
- Click View or print forms
In my case, when I scrolled to Taxable IRA Distribution Worksheet, I found an incorrect value on line 4 (total value of traditional IRAs on 12/31/2024). At this point, I had clicked through the Traditional and Roth IRA Contributions workflow multiple times. Each time I saw a value of "0." on the screen titled Tell Us the Value of All Your Traditional IRA Accounts. However, based on the worksheet, TurboTax was using a value of "5,155." in the backend.
I believe this happened because I had gone through the wizard once initially and put in that number when I misread and thought it was asking for 12/31/2023 rather than 12/31/2024. I may have clicked through the wizard the first time after reviewing my 1099-Rs imported from Charles Schwab. However, I had clicked through the Traditional and Roth IRA Contributions workflow multiple times after that point and corrected the value to "0".
I was only able to resolve this by deleting my 1099-Rs and reimporting them. After reimporting, I was prompted with the Traditional and Roth IRA Contributions workflow and only then saw the "5,155." value, which I zeroed out and fixed the calculation.
Based on the observation that deleting and reimporting 1099-Rs revealed the hidden number, I suspect that TurboTax somehow attaches entries for the Traditional and Roth IRA Contributions workflow to each form on import/review, but accessing the workflow directly from the Deductions and Credits section only displays the values from one of the forms, or a generic set of values for the taxpayer. If that is true, it appears that deleting the form "pushed" the hidden value to the generic values for the taxpayer, which allowed me to correct it.
