Backdoor Roth IRA: Contributions Related to this distribution previously Taxed by NJ

[tb001]

Context: I made backdoor roth contributions and entered all the information in TurboTax using this article. Some screen in article and on by TurboTax were different.  When i check Form 1040, 4a has the total contribution made for backdoor Roth for me and my wife and 4b (taxable Amount) is zero. So it seems i entered the information correctly.

Question: Everything worked fine on federal Taxes. However, when i m on State taxes, I get a notification on left hand side that "Col E-contribs prev taxed must be entered" on "Roth Conversion for Me" screen.

1/ What should enter on the field "Contributions Related to This Distribution Previously Taxed by New Jersey" on this screen? See image below.

2/ How is the above field related to "Value of Account on Date of Distribution"?

I have 2 same notifications for backdoor roth contribution made for me and my spouse.

[DanaB27 · Accepted solution]

1. Here you enter the nondeductible contribution you made to your traditional IRA (your basis) that you converted to the Roth IRA since this was income previously taxed by NJ. For example, if you made a $6,000 nondeductible contribution for 2022 then you would enter $6,000.

2. The value is entered to calculate the taxable and nontaxable portions of the distribution/conversion.