Backdoor Roth IRA with aftertax dollars

[kewo35]

I opened a completely new traditional IRA and Roth IRA accounts in Fidelity towards the end of 2024 to try to take advantage of the backdoor Roth strategy. I put in $2000 after tax dollars into my traditional IRA account, and immediately transferred $270 from the traditional to Roth account. 

At the beginning of this year, I got a 1099-R from Fidelity. Both box 1 and 2a have $270 in it. After putting in all the info in the wages and deduction section, I checked the 1040 form. Line 4a (IRA distribution) and 4b (taxable amount) are both $270.

Am I getting taxed for the $270 aftertax dollars I transferred to the Roth account? Should I be getting taxed? I thought backdoor Roth is a taxfree event as long as I am contributing with aftertax dollars and did not earn any additional income when it was in the traditional account.

[AnnetteB6]

You are correct regarding the expected tax treatment of converting non-deductible Traditional IRA contributions to a Roth IRA.  However, reporting this in your tax return is a two-step process.  You have entered the information from your Form 1099-R that reported the distribution.  Now you need to enter the non-deductible Traditional IRA contribution.  

Take a look at the following TurboTax help article for the steps:  

How do I enter a backdoor Roth IRA conversion?