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How do you stop TurboTax from taxing a Roth Backdoor IRA in the State of New Jersey tax return?

Federal portion is correct;  however, when it transferred to New Jersey tax return TurboTax taxed the entire IRA  distribution.  The IRA distribution was converted to a Roth IRA - therefore money should not be taxed.

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Employee Tax Expert

How do you stop TurboTax from taxing a Roth Backdoor IRA in the State of New Jersey tax return?

As you prepare your NJ return, you'll see a screen  Roth Conversion For You. If you had no other traditional IRAs existing before or after the conversion, you would enter the amount of the distribution as Contributions Relating to This Distribution Previously Taxed By NJ. See the screenshot below.

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Employee Tax Expert

How do you stop TurboTax from taxing a Roth Backdoor IRA in the State of New Jersey tax return?

As you prepare your NJ return, you'll see a screen  Roth Conversion For You. If you had no other traditional IRAs existing before or after the conversion, you would enter the amount of the distribution as Contributions Relating to This Distribution Previously Taxed By NJ. See the screenshot below.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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New Member

How do you stop TurboTax from taxing a Roth Backdoor IRA in the State of New Jersey tax return?

Thanks .  I had to unhide the form and then was able to edit and it worked.
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Employee Tax Expert

How do you stop TurboTax from taxing a Roth Backdoor IRA in the State of New Jersey tax return?

I'm glad it worked. Thanks for responding!
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New Member

How do you stop TurboTax from taxing a Roth Backdoor IRA in the State of New Jersey tax return?

Hello IsabellaG,

 

Very useful information.

I was able to do the Federal portion as well

Quick question specific to my case.

I did a $6,000 traditional IRA contribution Q1 of 2019, this money grew to about $6,058 and I converted it to Roth IRA in Q3 of 2019.  On TurboTax 2019, I placed $6,058 on Value of Account on Date of Distribution, and $6,000 on Contributions Related to This Distribution Previously Taxed by New Jersey.  Am I doing this correctly?

I appreciate your help and expertise.

Thanks.

Jeff