Backdoor Roth - Entering in Turbotax

[GRG1]

I should add  that the questions on my version of TurboTax do not match the questions in the directions.

I am really stuck.

[DawnC · Accepted solution]

At what step are you having an issue?   And what version of TurboTax are you using, online or desktop?   Does your conversion contain contributions made in 2023 that were for 2022?  

How to enter a back-door Roth IRA conversion?

[GRG1]

I am using the Premier desktop version an a Mac. There are no contribution in 2023 for 2022.

I have been trying to following the directions in the link you sent. My problem occurs when I put in the deductions. I end up with a screen that says I do not qualify for an IRA deduction.

I have tried this dozens of times, sporadically, I have gotten the result I want, but I have needed to make corrections and I can't. Then I am stuck all over again.

I have tried quitting the application, clearing the cache, restarting the computer, but relativeley consistent behavior from the application is to give me the message that I don't qualify for an IRA deduction.

This is all the more frustrating because I am trying to enter data for both spouses and I have to go through the questions for both, messing up both of them, when only one of them is wrong.

I would really appreciate some help.

Thank you.

[AnnetteB6]

It is OK that you are seeing the message that you do not qualify for an IRA deduction.  That is to be expected.  You are entering a non-deductible Traditional IRA contribution, not a deductible one.  

When a non-deductible Traditional IRA contribution is converted to a Roth IRA, there is no tax consequence because the contribution was made with after-tax money.  

Try going through the section again with this in mind and see if you have more questions.  

@GRG1 

[GRG1]

What is happening is that the amounts are being added to the IRA totals for the other IRAs the for which we have received 1099R's. When it worked correctly, the total in line 4a of the 1040 did not include the money converted to the Roth IRAs, line 4b stated "Rollover" and the taxes due were roughly $2500 less.

Line 20 on Schedule 1 is blank. But the 8606 is showing that the IRA contribution that I attempted to rollover is being taxed.  When it worked correctly form 8606 was correct.

Thanks.

[GRG1]

The other 1099Rs were not for Iras.

[GRG1]

Please ignore my remark about the other items not being IRAs.

I am sorry to add to the confusion.

I think that line 8 on form 8606 should have the amount converted to the Roth. This line is blank.

Thanks again.

[GRG1]

One more post. I wanted to let you know I figured it out. The problem was my misunderstanding of the rules of taxes on Roth conversions when one has a balance in their IRA account. In my defense, I had not had this tax situation in previous years. When I removed and then re-entered the Form 5498 data, I figured out my misunderstanding.

I appreciate your willingness to help me.

By the way, I have been using TurboTax for 20 years, and I continue to be a satisfied customer.