In 2019 before 4/15/19, I made 2 IRA nondeductible contributions ($6,500 for 2018 & $7,000 for 2019) & rolled over to Roth IRA shortly. I have already filed Fm 8606 in 2018 for the nondeductible IRA. On January 2020, I received a 1099 R from Vanguard lumping my both contributions together as taxable total distribution $13,506 (code 02 on box 7), & taxable amt not determined. I have keyed in 1099R in Turbo Tax & stated it is a rollover. However, 1040 treats it as total distribution and added it as income. Why? How should I report the Fm 8606 this year? Thanks!
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Please be aware that the whole distribution will show as income in TurboTax on the summary screen which shows gross income, not taxable income. To verify that the entry is correct please look at form 1040 line 4b (taxable amount).
Please use the following instructions to enter a "Backdoor IRA" to ensure it is calculated correctly in TurboTax:
To enter the nondeductible contribution to the traditional IRA ($7,000):
To enter the 1099-R distribution/conversion ($13,506):
Thanks so much for the detailed answer. Appreciate it greatly! 👍
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