Tax Year Prior to 2020: Two years of contributions on one 1099-R

[Greg Brown]

We made IRA contributions in Feb 2019 for both tax years 2018 and 2019. Because of income limitations, these were traditional IRA contributions rolled over to a Roth IRA. The transaction was completed speaking to a Fidelity rep, and the contributions were $6,500 for 2018 and $7,000 for 2019. The 1099-R we received for 2019 shows a Gross Distribution of $13,500, with Box 7 as 2, and IRA/SEP/SIMPLE box IS checked. When I enter this 1099-R in TurboTax, it seems I'm getting taxed on the $6,500 contribution for 2018. How do I handle this in TurboTax?

[VictorW9]

Did you fill out form 8606 to determine the cost basis. Also, make sure that box 2a is left blank.

[Greg Brown]

How would I know what forms are being completed by TurboTax in advance of filing? One of the things I've always wanted to do is view the actual return - all forms - before filing, but I've never seen a way to do that.

[JohnB5677]

TurboTax has two versions of software. 

There is a Desktop version that you can get on a CD or download from our website.With this software:

• You purchase it when you get it.
• You can do up to five tax returns
• But most important to you.  You can work on your taxes and then switch directly to the FORM to see what it looks like.

The other version is the ONLINE  platform.

In this case:

• You pay when you're finished.
• You can only do one tax return.
• You cannot see FORMS until you pay.

You do not have to file once you've paid.  You can go to the Print my Return section and view or print a copy for you review.  You can then go directly back in and make any adjustments.

Go to this link https://turbotax.intuit.com/ and check Products and Pricing.

[dmertz]

The result suggests that your basis from line 14 of your 2018 Form 8606 was not transferred in or entered into 2019 TurboTax.  If you failed to report your nondeductible traditional IRA contribution for 2018 on Form 8606, you must do so.

[Greg Brown]

After more searching online, I think I found the answer. If the Backdoor Roth contribution is made in the following year, that's also when the rollover is reported. So I need to report the entire $13,500 rollover (for both 2018 and 2019) in this year's taxes.

[Greg Brown]

@JohnB5677 Thanks for that information. I am using the online version, as I usually do. I'll just have to step carefully thru the last few screens to make sure I don't file.

[dmertz]

True regarding reporting the conversion, but the contributions for each year is required to be reported on the corresponding year's Form 8606.