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Level 2
posted Feb 19, 2021 2:04:53 PM

Can you report a $14000 traditional nondeductible ira ($7000 for 2019 and $7000 for 2020--both done in early 2020) using the roth ira backdoor method and how do you?

I keep getting a taxable amount of $3000  showing when I check the preview of the return, so I know I am doing something wrong as this should be $0.  Taxes were already paid on this income.

0 2 276
2 Replies
Level 15
Feb 19, 2021 8:30:43 PM

this works (tax = 0) only if you are converting an IRA worth $14,000 or less, and you include a Form 8606 showing a total basis of $14,000.

All your IRAs at all financial institutions must be counted.

Level 2
Feb 20, 2021 12:59:13 PM

I understand that I need to include the 8606, the amount is 14,005. (it made a few dollars prior to conversion to the Roth a week later), but within TT it has been impossible for me to figure out how to enter the 2019 and 2020 ND contributions in the 2020 return.  Your answer was not helpful, for my situation.