I used AFTER TAX money to purchase a $7000 IRA and then subsequently converted it to a ROTH IRA. When I input the information into Turbo Tax - it seems to want me to pay taxes AGAIN on the $7000 (that I already paid tax on) as it reduced my refund amount once I entered the information. What am I doing wrong? How do I enter it properly in Turbo Tax? (PS - I checked and I met all of the qualifications for the "back door conversion" of the IRA to ROTH). Thank you 😄
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See this TT FAQ
in particular pay careful attention to the "Yes, make part of my IRA contribution nondeductible" question.
the FAQ is seems to be talking about doing the IRA contribution and conversion in the same tax year. If it's in a different tax year the procedure may be a little different. Please ask again in that case it if doesn't work.
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