Can i get a CD after I paid for Turbo Tax through T Rowe Price?

[smgray]

Discount for Turbo Premier offered by T Rowe. But now having trouble with a section on Roth Conversions. Told by Community to get the CD. How?

[fanfare]

Enter a Roth Conversion correctly, TurboTax Online can handle it.

[smgray]

Thank you. I believe I have entered the conversion correctly. However, Turbotax is treating it as a "contribution" rather than a conversion from a long held traditional IRA. Hence It says I have an excess contribution and am only allowed 7000 annually.

I am past the age of being required to take an RMD. But 2020 that was waived, I transferred instead to my Roth as a conversion. 

I've tried to follow the "back door conversion" solutions but that didn't seem to work either.

I read in the Community messages, that having the CD would be different than the online program for conversions to Roth IRA's.

[SteamTrain]

Yes...the CD is somewhat different from the Online software...many of us use it exclusively since we dislike the Online inability to have a "Forms Mode".  And the order of the questions is commonly different too...

But...the Online software can handle your situation just fine.

Don't try to do a backdoor conversion...also might need to remove that 1099-R and enter it again from scratch..

 #1)  Mistake you made: The software complaint about you going over $7000 max contribution, is because you entered it improperly as a "contribution" to a ROTH IRA on the Deductions&Credits page.  You need to go to that page and take it out of there entirely.

#2)   your conversion to a Roth IRA only goes in the 1099-R section on the Wages&Income page.  You enter the 1099-R that your received right there as a 1099-R...BUT...

........................on the pages that follow the main 1099-R entry page that shows all the box values...ther is one page...

..2a) "Do any of these situations apply to you? page....select None

....2b)   "How  much of the $xxxx was a RMD?" you will need to indicate that None of it was an RMD withdrawal  (since IRA RMD's were suspended)....Then a few pages later

....2c)   Next Page .... "Tell us if you moved the money through a rollover or conversion" Select that you "Converted some or all of it to a ROTH IRA"

.....2d)  Next page you need to select the box that is appropriate.  IF the entire value of box 1 was converted....you need to indicate that. 

Should be mostly done now .  Maybe some later Q's about whether you took all your RMDs in 2020.

[smgray]

Thank you. On your step 2, I entered "transferred part directly to a charity" which I did. 

If I select "none" is there another place that I can enter a "qualified charitable distribution" which lowers my taxable income that would be after the page "Do any of these situations apply"?

[macuser_22]

---

@smgray wrote:

Thank you. On your step 2, I entered "transferred part directly to a charity" which I did. 

If I select "none" is there another place that I can enter a "qualified charitable distribution" which lowers my taxable income that would be after the page "Do any of these situations apply"?

---

Qualified charitable distributions.

A qualified charitable distribution (QCD) generally is a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax-deductible contributions. You must be at least age 70½ when the distribution was made. Also, you must have the same type of acknowledgment of your contribution that you would need to claim a deduction for a charitable contribution.

If you are 72 or older, the interview will ask if you took the RMD. After that it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.

f you are 70 1/2 or older, it will ask if you make a charitable contribution. Answer yes and then enter the QCD amount.

In the online version the Charitable Donation question is on the "Do any of these situations apply to you?" screen.

The 1099-R box 1 amount will go in the 1040 form line 4b (taxable amount) minus the QCD amount and the total box 1 amount will go on line 4a with "QCD" next to it.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

[SteamTrain]

Ohhhhh...the details are important...you never said anything about a Transfer to charity for any of it.   

Remember that it has to be sent directly from the IRA to the charity..…you cannot take the $$ and then send the $$ separately  (exceptions for IRA accounts that have their own checks that one can write, and the $$ come directly out of the IRA)

__________________________

I tried it with a 1099-R, $5000 box 1,  $1000 as QCD and $4000 as ROTH conversion...and the software still did it right.

The 1040 showed $5000 on line 4a of the 1040, and $4000 on line 4b with QCD in the margin.  Which is all correct.

But I did it for a 74-year old person in 2020....and if you were between 70.5 and 72 years old in 2020, sometimes the software has a problem doing that properly...(but if that occurs, there is a workaround....though I thought they might have fixed that...don't know)

.......IF the following doesn't work for you how old were you on your 2020 birthday?

_______________________

It all proceeds properly for me:

1)  Do any of these situations apply to you?
...........check: "I transferred all or part of this money directly to charity"

2)  How much was an RMD:  "None of this was an RMD"

3) Amount donated:   enter the $$$$$

4)  Tell us if you moved the money through a rollover or conversion  :  I converted some or all of it to a Roth IRA

5)  Did you convert all of this $$$.cc (Box 1) to a Roth IRA? :  No, I converted less than $$$.cc 

____________________________

Done:   #3 + #5 amounts should be no greater than box 1 on the 1099-R.....and line 4b on the form 1040 should be box 1 minus the $$ transferred to charity.   

(with some handwaving differences to those numbers if you ever made after-tax/nondeductible contributions to any traditional IRA in the past, then it gets messy).

_________________________

Added Info:

On my #5 step here.....when I went back thru the interview to repeat the steps I did previously a second/3rd/4th time....in my 

#5  " Did you convert all of this $$$.cc (Box 1) to a Roth IRA?"  ...the software wouldn't take my  $$ amount converted in the second selection, unless I clicked on the top box first for : " Yes, all of this money was converted to a Roth IRA" first, and THEN clicked on:  "No, I converted less than $$$$.cc  "    to  the $$ amount that was actually converted.

[SteamTrain]

Added some strange bugaboo situation fix above for my step #5 if you go thru the Q&A more than once.

[smgray]

74 on Dec 2020.

and yes the charities received checks directly from the two brokerages.

I claimed my withdrawals as an non RMD .   Since we didn't have to withdraw any this year. 

I think I got by the part that stumped me. It's not telling I have excess contributions, anymore.

Excuse me for not telling all the details at first. Just thought if I got the CD things would be explained better?

I hope it's all ok. 

Gonna submit.

Thank you to all who gave me tips or steps to follow.