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Roth IRA conversion not showing up correctly in Tax Form

Hi,

 

I put $6000 in my traditional account on Fidelity and next day, converted that into Roth account. (Transferred the money from Traditional to Roth). This money is from the salary I receive. I.e. it is already taxed. 

On form 1099-R , 2.a (Taxable Amount) is stated as $6000 and 2.b Taxable amount not determined is selected. 

However, after following the steps mentioned here : https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-convers...

I am still seeing 4.a and 4.b in 1040 as $6000. I.e. It seems like I am being taxed twice on it. 

 

Any recommendations on how to fix the issue?

 

Tagging to get eye balls : @CatinaT1 , @JotikaT2 , @BillM223 

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1 Best answer

Accepted Solutions

Roth IRA conversion not showing up correctly in Tax Form

When did you make the Traditional IRA contribution and conversion  - 2019 or 2020?   Did you enter it into the IRA contributions section and say you want it to be non-deductible?

 

It sounds like you probably did not.Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

5 Replies

Roth IRA conversion not showing up correctly in Tax Form

When did you make the Traditional IRA contribution and conversion  - 2019 or 2020?   Did you enter it into the IRA contributions section and say you want it to be non-deductible?

 

It sounds like you probably did not.Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Roth IRA conversion not showing up correctly in Tax Form

The contributions were made in Jan 2019 for the year 2019. 

 

I am using the software version of turbotax. 

The closest thing I see for nondeductibe is a question stating :

Any nondeductible contributions to [person]'s IRA? 

Its asking for non deductible contribuitons made in 2018 or earlier. 

 

In my case, I perform these steps of putting taxed money into Traditional and then converting the entire amount to Roth. So, I think my basis for 2018 should then be 0?

 

Roth IRA conversion not showing up correctly in Tax Form

Did you enter the contribution as I posted above?   The last screen in the IRA contribution interview will tell you if the contribution is allowed and ho much, if any, is deductible.    It should say that your $6,000 contribution has a zero deduction if entered correctly and there should be a 8606 form as part of the tax return with the 2019 $6,000 contribution on line 1.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Roth IRA conversion not showing up correctly in Tax Form

This is what you should see - the "choose not to deduct" screen will not appear if your MAGI prohibits a deduction , then non-deductible is automatic.

 

Screen Shot 2020-06-14 at 11.35.50 AM.jpgScreen Shot 2020-06-14 at 11.36.06 AM.jpgScreen Shot 2020-06-14 at 11.37.30 AM.jpgScreen Shot 2020-06-14 at 11.37.39 AM.jpgScreen Shot 2020-06-14 at 11.37.59 AM.jpg

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Roth IRA conversion not showing up correctly in Tax Form

This worked. 

I was not looking into the deductions tab. Thanks a ton!

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