topic I am trying to file a "Back Door" Roth conversion but the taxable amount turbo tax is calculating is not the taxable amount I am calculating on my Form 8606. in Retirement tax questions

I am trying to file a "Back Door" Roth conversion but the taxable amount turbo tax is calculating is not the taxable amount I am calculating on my Form 8606.

dsfjoseph — Tue, 14 Apr 2020 21:25:24 GMT

The difference seems to be with the non-deductible contribution made to my traditional IRA between 1/1/2020 and 4/15/2020 (Box 4 on Form 8606). This contribution should not count towards the basis used to calculate the taxable amount but it seems like turbo tax is including it. Has anyone figured out how to enter these correctly?

Re: I am trying to file a "Back Door" Roth conversion but the taxable amount turbo tax is calcula...

KarenM90 — Tue, 14 Apr 2020 21:49:53 GMT

Please see the steps recommended by TurboTax, depending on your TurboTax version: Back Door Roth

I recommend that you delete your current entries and start over with the appropriate steps in the link.

Re: I am trying to file a "Back Door" Roth conversion but the taxable amount turbo tax is calcula...

dsfjoseph — Tue, 14 Apr 2020 23:42:53 GMT

I tried your suggestion but unfortunately, still getting the incorrect taxable amount in turbo tax. My traditional IRA has a balance other than zero. Additionally, I keep track of non-deductible contributions and have done conversions in prior years. This makes my situation pretty complex. The issue is, turbo tax is counting my $6,000 2019 traditional contribution made in 2020 as part of my basis when calculating the taxable percentage of my distribution and according to the Form 8606, this $6,000 should not be included in the basis calculation. The Form states "Although the contributions to traditional IRAs for 2019 that you made from January 1, 2020, through April 15, 2020, can be treated as nondeductible, they aren’t included in figuring the nontaxable part of any distributions you received in 2019."

Re: I am trying to file a "Back Door" Roth conversion but the taxable amount turbo tax is calcula...

KarenM90 — Wed, 15 Apr 2020 00:44:32 GMT

I am sorry that the step my step instructions didn't solve the issue.

I recommend that you upgrade to the LIVE product. That way you can have a CPA or EA log in with you and see what is going on.