I did roth ira conversion, which can bypass high AGI restriction, why turbo tax says "7000$ I put into a roth is considered an excess contribution"

[bmoyer]

Could you have possibly entered it as a "recharacherization", rather than a "conversion"? Take a look at the IRA worksheet and form 8606 and perhaps that will show you what's going on.

[fanfare]

Did you go through the custodian?

You can't contribute 7000 to a Trad IRA and 7000 to a Roth IRA.

@zhilingzeng 

[VolvoGirl]

Only enter it from the 1099R.   Do not enter it again under Deductions & Credits,   It is not a new contribution.   

[zhilingzeng]

I can provide more details if needed. I converted the funds to a Roth IRA in January 2026, so I have not received a Form 1099‑R yet.

Based on what I’ve read online, I should only report that I made a nondeductible contribution to a Traditional IRA for tax year 2025 and indicate that my AGI is too high to deduct the contribution.

Since the Roth conversion occurred in 2026, I understand that I will receive Form 1099‑R in January 2027, and that I will report the Roth conversion on my 2026 tax return.

Is this understanding correct?

[bmoyer]

That sounds correct. You should see a basis of $7000 on line 14 of your form 8606 for 2025 (assuming you have no previous basis in traditional IRAs) which will reduce or eliminated taxes on the conversion when you file your 2026 return, on which the conversion is reported. (Conversions are reported in the year of conversion, contributions are reported for the year of the contribution)

[AnnetteB6]

Your understanding is correct.  You should only be entering the Traditional IRA contribution into your 2025 tax return.  TurboTax will determine whether the contribution may be deductible.  If it is not deductible, it will automatically be considered to be non-deductible, or you may see a question about choosing to make it non-deductible.  

You should not enter any information in your 2025 return with regard to a Roth IRA.  You will report the conversion on your 2026 tax return since it was converted during 2026.

For reference, take a look at the following TurboTax help article:

How do I enter a backdoor Roth IRA conversion?

@zhilingzeng