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chidis
Returning Member

I funded a Roth from a traditional IRA funded from post tax dollars. It was included in taxable income in my return, how do I fix, the software doesn't seem to work?

In my original return backdoor Roth was considered taxable income even though it was funded with post-tax dollars. There doesn't seem to be a way to correct on the amended return, is this being fixed?
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4 Replies

I funded a Roth from a traditional IRA funded from post tax dollars. It was included in taxable income in my return, how do I fix, the software doesn't seem to work?

Click AMEND.

revise  your return to include Form 8606 showing your basis in Traditional IRAs.

There is a TurboTax question about this.

 

SUBMIT 1040-X

AnnetteB6
Expert Alumni

I funded a Roth from a traditional IRA funded from post tax dollars. It was included in taxable income in my return, how do I fix, the software doesn't seem to work?

The missing piece that is making it taxable is that there is no basis being considered in the Traditional IRA.

 

You should revisit the section of your return where you initially entered the non-deductible contribution to your Traditional IRA.  If it was not entered as non-deductible then there will be an amount shown on Form 1040 Schedule 1 Line 20 IRA deduction.

 

Take a look at the following TurboTax help article for step-by-step instructions for entering the information into TurboTax in order to make sure things are reported correctly:

 

How do I enter a backdoor Roth IRA conversion?

 

@chidis

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chidis
Returning Member

I funded a Roth from a traditional IRA funded from post tax dollars. It was included in taxable income in my return, how do I fix, the software doesn't seem to work?

Yep, trying to file the 1040x, but in the original return it included the IRA amount in the AGI but on the 1040x, in the column that is supposed to show the original amount of the AGI it does not include the IRA amount. So although the amended amounts (col C) are correct, the original amount are not (col A). Spent 1 hr 20 mins with support and was told the form was being fixed and it would be out mid-March. It still doesn't work.

chidis
Returning Member

I funded a Roth from a traditional IRA funded from post tax dollars. It was included in taxable income in my return, how do I fix, the software doesn't seem to work?

Just spent another 1+ hrs on with a rep who told me I'd have to upgrade to turbotax live to speak with a tax professional. This is not a tax issue, it is a software issue. I've been a TT customer for as long as they've offered the product, but this will be my last year. 

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