Hello,
In April 2020, I deposited the maximum $6000 into Roth IRA. A few months later, I recharacterization of $6000 plus $800 gains into an empty Traditional IRA account. A few days later I converted $6800 back into my Roth IRA account.
I received two different 1099-R forms from my broker and entered them in Turbotax. However, my e-file of federal tax was rejected with a reason of duplicate 1099-R. How should I fix it? Your help is sincerely appreciated!
Context:
- 1099-R for the Traditional IRA: it has the "Taxable amount not determined" and "Total distribution" boxes checked, Box 7 code: 2, and IRA/SEP/Simple checked. Below are how I did in TurboTax:
- "Good News: You Don’t own extra tax on this money”
- Did you inherit the IRA – No
- What did you do with the money – move the money to another retirement account à combination of rolling over, converting or cashing out à amount converted to a Roth IRA.
- Was this a withdrawal due to a qualified disaster distribution? – No.
- 1099-R for the Roth IRA: it has Box 7 code: N. Below are how I did in TurboTax:
- Verified the numbers of box 2a, 2b and 7
- Where is this distribution from? A) pick up contribution; b) military service; c) self-employed retirement plan established before 1967; d) None of the above. – selected d) None of the above.
- Was this a withdrawal due to a qualified disaster distribution? – No.
After entering information of both 1099-Rs, got the following questions:
- Any nondeductible contributions to your traditional IRA from 2019 or previous years. – Selected No as I only did backdoor IRA in 2020.
- Tell us the value of your traditional IRA:
- Traditional, SEP, and SIMPLE IRA on Dec 31, 2020: 0
- Outstanding Rollover: 0
- Outstanding recharacterization: 0
Finally, this is what I have in the 8606 form:
Line 13: 6000 *
Line 14: 0
Line 15a: 0
Line 15 b: nothing
Line 15c: 0*
Line 16: $6800
Line 17: $6000
Line 18 taxable amount: $800.*
The number in 1040 4a is $12000, and in 4b is 800 as taxable.
My Question:
I’ve contacted the customer service of TurboTax. They told me that the computer cannot differentiate the two 1099-R forms as they have same amount in box 1. So I have to mail the tax forms.
Based on your experience with the recharacterizations/conversions, please advise if I enter anything incorrectly? Are there any other steps I will need to take within TurboTax to fix it and do the efile?
Thank you very much for reading and providing your input!