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