I did a backdoor ROTH IRA this year and for some reason NJ is taxing it. A previous article (link) said to "mark an X in the column labelled 'Check if Non-taxable'", however, I am not seeing this popping up anywhere in my turbotax prompts. How do I fix it so that NJ won't tax a backdoor ROTH IRA?
Should I be setting value of account field here to 0?
Also, when I tried to follow: "How do I enter a backdoor Roth IRA conversion?" in the federal component, Step 11 never shows up and instead I see this. Not sure if this is resulting in the problem I'm having.
you probably did not do a true backdoor roth contribution.
did you start with a zero balance in your traditional IRA before beginning this adventure?
did you end up with a zero balance in your Traditional IRA by converting it all to Roth?
Yes I started with a zero balance and ended with a zero balance in the Traditional IRA when I executed this. I didn't invest anything before rolling over.
You have to tell TurboTax NJ Worksheet C that you had a contribution.
Set line 4a of the worksheet to the amount of your distribution/conversion.
TurboTax doesn't call it Worksheet C (last I looked) but it will ask you for the amount for 4a.