topic Backdoor Roth for 2020 and 2021 - half is showing as taxable in Get your taxes done using TurboTax

Backdoor Roth for 2020 and 2021 - half is showing as taxable

Spouse1234 — Mon, 09 Mar 2026 08:21:12 GMT

I'm following the instructions at https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-conversion/00/25567 and https://ttlc.intuit.com/community/retirement/discussion/back-door-roth-ira/01/2552058#M168628, but TurboTax is still taxing half of my backdoor Roth IRA contribution.

In early 2021, I contributed $12,000 to my traditional IRA. $6000 for 2020, and $6000 for 2021. A few days after each contribution, I converted it to a Roth IRA. I also said my basis was $0.

In TurboTax, in the 1099-R shows the $12,000 distribution. I entered in as described on the site. But line 4b on my 1040 still lists $6000.

For tax year 2017, I did this incorrectly and got a letter from IRS. Through help on this site, I got it corrected. So I'm trying to make sure I do it right this time.

Re: Backdoor Roth for 2020 and 2021 - half is showing as taxable

Critter-3 — Fri, 11 Mar 2022 13:13:42 GMT

The 2020 non deductible contribution for 2020 should have been reported on the 2020 return creating a form 8606 that will in turn be used on the 2021 return. In the 2021 return when asked if you had prior year non deductible basis from line 2 of the 2020 8606 you would enter the $6000 to be added to the 2021 non deductible contribution. So go back to that section and make the correct entry. If you did not complete an 8606 on the 2020 return you need to amend that return to add it.

Re: Backdoor Roth for 2020 and 2021 - half is showing as taxable

Spouse1234 — Fri, 11 Mar 2022 13:44:20 GMT

Thank you for your quick reply.

In 2020, I did file an 8606. But Line 2 says 0 for Total Basis, because I immediately converted it, and I waited until my 2020 taxes were filed before I contributed for 2021.

So did I do something wrong with the 2020 total basis?

I saw that on the screen for Let's find Your IRA Basis, if I change that from $0 to $6,000, the tax liability goes away. But did I do 8606 incorrect in 2020? But how did that happen?

Re: Backdoor Roth for 2020 and 2021 - half is showing as taxable

Spouse1234 — Sat, 12 Mar 2022 17:28:08 GMT

Just checking on my latest update about the Form 8606 and if you had a thought on that. The problem seems to correct itself if I put $6000 as my basis. However, my 8606 from 2020 says it is zero, so something is not right.