TurboTax 2023 Home & Business: Cannot find where to enter taxable basis for Roth IRA Conversion

[Miike]

Hello,

I'm struggling with this. Other posts address it, but still haven't seen how to do this.  I guess this is a back door roth conversion.

Background
2021: Contributed to IRA but was not permitted to deduct (after tax $3000 IRA Contribution)
2023: Converted that IRA to Roth IRA ($3400).

Problem: I only owe tax on the $400 increase in value.  I cannot figure out where to enter this info in TT 2023 Home & Business Version

1099-R 
Box 2b:

   [X] Taxable amount not determined

   [X] Total Distribution

Box 7: 
2 (Early Distribution (except Roth IRA)
[X] The IRA/SEP/SIMPLE Box is checked on my copy of the 1099-R


Turbo Follow-up Questions

What did you do?
  [X] I moved the money to another retirement account (or returned it....)

  [X} I did a combination

        Amount rolled over to another (or back to the same) retirement account:  $0
        Amount Converted to Roth IRA: $3400  (entire amoutn)
   

[AnnetteB6 · Accepted solution]

Hopefully, you reported the non-deductible Traditional IRA contribution on your 2021 tax return showing that you have $3000 basis in the Traditional IRA.  This would be shown on Form 8606 for 2021.  

You will need to enter the basis of the Traditional IRA into your 2023 return so that only the earnings portion is taxed due to the conversion to the Roth IRA.  After you have entered the Form 1099-R reporting the Traditional IRA distribution and conversion to the Roth IRA, there will be follow-up questions that ask if you ever made and tracked non-deductible contributions.  This is where the basis information is entered so that only the earnings will be taxed.

If you did not file Form 8606 with your 2021 return when the non-deductible contribution was made, take a look at the information in the following TurboTax help article for some guidance about filing a 2021 Form 8606 on its own to report that basis amount.  Click the link for If your conversion contains contributions made in 2022 for 2023.  Then follow the instructions for filing a Form 8606 on its own.  The instructions are for 2022, but you will be filing 2021 Form 8606.

How do I enter a backdoor Roth IRA conversion?
 

[Miike]

"After you have entered the Form 1099-R reporting the Traditional IRA distribution and conversion to the Roth IRA, there will be follow-up questions that ask if you ever made and tracked non-deductible contributions.  This is where the basis information is entered so that only the earnings will be taxed."

@AnnetteB6 

Thanks.  I found it!!  What I missed before (perhaps this can help others):
When the dialog returns to 'Your 1099-R Entries' after the first round of questions, the continue button will fire off another set of questions.  My expectation was that it would've asked during the initial set of questions.