Backdoor Roth Questions

[shanavt]

Hello,

In 2023 between Jan 1 - Apr 15, 2023 I contributed $6,000 to my traditional IRA and then converted it to my Roth for the 2022 year.  Also, in 2023 I contributed $6,500 and converted it to my Roth for year 2023.

*** I am using TurboTax Online version

When I filed my 2022 taxes in the "Tell Us How Much You Contributed" screen under Deductions & Credits - Traditional and Roth IRA Contributions, I listed a total of $6,000 and said that I had contributed that total amount between Jan 1 - Apr 15, 2023.

My question is how to fill out this same screen for my 2023 filing.  Would I list $12,500 under my total 2023 contributions or would I list $6,500?  My 1099-R lists the $12,500 as the Gross Distribution and Taxable Amount in boxes 1 and 2a respectively.

Any help is much appreciated!  Thanks!

[MonikaK1]

Your 2023 contributions will be the $6,500 that you designated for 2023. You will account for the entire $12,500 when you enter the Form 1099R.

If your conversion includes contributions made in 2023 for 2022, you'll need to check your 2022 return to make sure it includes Form 8606, Nondeductible IRAs. If this form isn't included in your 2022 return, you'll need to fill out a 2022 Form 8606 to record your nondeductible basis for conversion, and mail this form to your designated IRS office. 

Don’t amend your 2022 return to record your basis. (Note: If you're required to file Form 8606 to report a nondeductible contribution to a traditional IRA, but don’t do so, you’ll be subject to a $50 penalty. This penalty can be waived if you can show reasonable cause.) 

To enter this prior-year basis in TurboTax:

1. On the Here's your 1099-R info screen, select Continue.
   • Search 1099-R and select the jump to link to access this screen.
2. Answer Yes to Any nondeductible Contributions to your IRA? if you had any nondeductible contributions in prior years.
3. Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs.

When you enter nondeductible contributions, TurboTax will track your basis if they are entered correctly.

1. Check the Traditional IRA box and select Continue.
2. Answer Yes to the question, Did you Contribute To a Traditional IRA?
3. Answer No to the question, Is This a Repayment of a Retirement Distribution?
4. On the screen, Tell Us How Much You Contributed, enter the amount contributed and select Continue.
5. Answer No on the screen Did You Change Your Mind?, then answer the questions on the following screens.
6. When you reach the Choose Not to Deduct IRA Contributions screen, select Yes, make part of my IRA contribution nondeductible, enter the amount you contributed, then select Continue. If none of your contribution can be deducted, you won't see the option to make part of it nondeductible. Instead, the full amount of your contribution will automatically be nondeductible.

When you enter the Form 1099-R, enter the information as shown. 

1. Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
2. Select I converted some or all of it to a Roth IRA and Continue.
3. Next, choose Yes, all of this money was converted to a Roth IRA.
4. Continue answering questions until you come to the screen, Your 1099-R Entries.

See this help article for more information.