Why did AGI increase on my taxes due to a backdoor Roth IRA conversion? I thought contributions to Roth IRAs didn't raise my AGI.
I contributed to a Traditional IRA using my own, personal, after-tax dollars before doing the backdoor conversion to a Roth IRA. So I was already taxed on that money. So why is it raising my AGI to tax me a 2nd time?
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1 Best answer
AmyC
Expert Alumni
Feb 16, 2024 5:04:19 PM
As you go through the program, you have to enter the basis in the program, which was your already taxed dollars. You would have an 8606 showing the basis from the contribution with already taxed funds. Be sure to enter the tax basis.
As you go through the program, you have to enter the basis in the program, which was your already taxed dollars. You would have an 8606 showing the basis from the contribution with already taxed funds. Be sure to enter the tax basis.