I contributed $6K into a Traditional IRA I set up earlier this year. I immediately converted it to my Roth IRA account. I already filled out the 1099-R section (Wages & Income) indicating I converted all of the money to a Roth IRA account. However, when I try to report the contribution (Deductions & Credit), it increases my Federal Refund even though the 1099-R says I converted it all to Roth (additional, says income too high to deduct IRA contribution not that that should matter in this situation). Any ideas? I read the FAQ on reporting backdoor contributions and have double checked my responses, but no luck.
Look at the form 8880 ... there is a credit you probably qualified for.
Critter, if TurboTax is indicating that income is too high to deduct the traditional contribution, income is also too high to qualify for any Retirement Savings Contributions Credit.
BusterPosey23, until you enter your nondeductible traditional IRA contribution, TurboTax does not have this addition to your basis in nondeductible traditional IRA contributions to apply in reducing the taxable amount of your Roth conversion. You should expect your refund to increase in your refund when you enter the nondeductible traditional IRA contribution because doing so allows TurboTax to treat more of your Roth conversion as nontaxable, an amount that TurboTax was previously treating as taxable.