I don't understand this comment: "Because $1,200.00 was withheld in taxes, you should only select Yes if you actually converted $12,000 using $1,200 of your own money"?

[claudiafwinkler]

I converted $12,000 from my IRA to a Roth IRA. Only $10,800 went into the Roth. The remaining $1,200 was withheld for Federal income tax. I don't know which item to check..... 1. Yes, all of this money as converted to Roth IRA. 2. No, I converted less than $12,000. 3. I didn't convert any of the money.

[MaryK4]

If you did not convert the entire $12,000 yo8u would indicate that you converted less than $12,000.  

Because that $1,200 was sent to the IRS for taxes instead of being deposited into the Roth IRA, it is treated as a taxable distribution.  If you are under 59 ½, you will likely owe a 10% early withdrawal penalty on that $1,200, even though it was used to pay taxes.  TurboTax is checking if you "made up" the difference. If you had taken $1,200 from your personal savings account and added it to the Roth within 60 days, you could say "Yes" you converted the full $12,000. Since you didn't, you only converted $10,800.

[VolvoGirl]

#2  you only converted 10,800 into the ROTH IRA.   You would have needed to replace the 1200 tax withholding with other money to convert the full 12,000.   It actually works out the same as being 12,000 taxable.   But now you only have 10,800 in the ROTH account.