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My spouse back door Roth IRA conversion shows a deductible amount

Me and my spouse contributed to a traditional IRA to be bale to do a  back door Roth IRA conversion due to our income limits.
My contribution works fine but for my wife there is an issue. When I do a review of my tax return, in the Traditional IRA contributions worksheet  i see two lines:
Line 12- Deductible IRA contribution- 220
Line 13- Non deductible IRA contribution- 6280
And it says that I cannot make more than 220 non deductible.

I understand that this can probably be resolved if I enter 220 there. But my question is that how does it get to the 220 number (My spouse contributed 6500 in total for year 2023). It did not do anything like that for me when I contributed and reported it in the same way in Turbo tax.

I went to deductions and credits and entered as below:

How much did you contribute to traditional IRA- 6500
Did you change your mind- No
Any excess before 2023- No
Any non deductible contribution to IRA- No
Value of all traditional IRA at end 2023- 0
It said your income is too high to deduct
Next Page - Chose Not to deduct IRA contribution- You have 2023 deductible traditional IRA of 220.
How did it get this 220.

Next page- how much do you want to make non deductible. Should i say 220 instead of 6500?

Thanks,
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3 Replies
dmertz
Level 15

My spouse back door Roth IRA conversion shows a deductible amount

$220 of your wife's traditional IRA contribution is deductible because your MAGI of around $227,660 is in the phase-out range for deductibility of her contribution.

 

Because you, not your wife, is the one covered by the workplace retirement plan, your phase-out range in must lower, well below your MAGI.

 

When TurboTax indicates that no more than $220 can be elected to be made nondeductible, TurboTax is referring to the amount that would otherwise be deductible.

My spouse back door Roth IRA conversion shows a deductible amount

Thanks.

My wife does not work so she has no workplace plan. And I am filing jointly.

 

What should i do now? I have already moved all of the traditional IRA contribution to a Roth through back door conversion.

thanks

dmertz
Level 15

My spouse back door Roth IRA conversion shows a deductible amount

Simply choose to make nondeductible the $220 that would otherwise be deductible.

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