Can not get help with backdoor roth ira from TurboTax Premier Live

[superlyc]

Hi, 

I can not get help from TurboTax Premier Live. So ask here.

Because my total income is above the limit, I did the backdoor Roth ira contribution. Basically, put $6000 (after tax money) in traditional ira and convert (or roll over, I do not remember the tech term) to my roth ira account. This the first time I did it (2021). I googled and it says I need to file Form 8606

1 I searched Form 8606 and follow the instruction, it say "Any nondeductible contributions to your IRA? answer Yes, then continue. We'll generate and fill out the 8606 behind the scenes." But when I got to this step it also says " let us know if you made and kept track of any nondeductible contributions to your traditional IRA from 2020 or prior years", So, this is 2021, should I click "Yes", this seems the only way to get me to a page talking about Form 8606

2 After a few steps, it ask me "Enter Your Roth IRA Contributions". Should I enter 0 or $6000? One of the Turbox tax expert told me to put in $6000, but result in asking me pay penalty. I don't think that is correct.  I did not put money in Roth IRA directly, but moved it from a traditional IRA to the Roth IRA.

3 Another confusing part is, either way, I do not see Form 8606, when I checked tools view my tax summary. How could I know whether TurboTax generate Form 8606 before I finish and pay. I don't want to pay and find out TurboTax did not do it correctly.

Thank you

[AnnetteB6 · Accepted solution]

To address some of your concerns, you made a contribution to a Traditional IRA which you then converted to a Roth IRA.

You should have a Form 1099-R reporting the distribution from your Traditional IRA showing the amount that you then converted to the Roth.

When you enter your information into TurboTax, you will need to indicate that you made a non-deductible contribution to your Traditional IRA.  This will generate Form 8606 showing the non-deductible contribution.  If you have not made non-deductible contributions in prior years, answer 'no' to the question asking about prior years.  Form 8606 will not show up anywhere in the Tax Summary that you can view online.  

You will not enter information about a Roth IRA contribution because you did not make a contribution.  If you do enter information about a Roth contribution, there will be penalties associated with it due to your income limitations.

The following TurboTax help article will go through the process of entering all of this into your tax return with step-by-step details.  Please take a look.

How do I enter a backdoor Roth IRA conversion?

[superlyc]

@AnnetteB6 I did follow the instructions from the link but I could not get to the Step 1-7 "Answer the questions on the following screens, until you reach Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible and Continue"

And do you mean I will not see Form 8606 before I finish everything? I am just concerned I still can not find the form after I wrap up and pay.

[AnnetteB6]

If you are in the IRA contributions section and you have checked the box for Traditional IRA, then you should see the subsequent questions as outlined in the help article.  Be sure that you did check the box for Traditional IRA to get started.

Also, Form 8606 will not be presented to you on the screen as you go through this process.  Nothing is entered directly onto that form.  All inputs are taken from your answers to the questions regarding your Traditional IRA contribution.

If you are using TurboTax Online, you will only be able to see or print Form 8606 after you have paid the TurboTax fee.  If you are using one of the CD/downloaded versions of TurboTax, you can view or print any of your tax forms at any time during the process.  

@superlyc

[superlyc]

@AnnetteB6  After "Did you change your mind",  Here are what I saw

1 "Any Excess IRA Contributions Before 2021?"

I select "No"

2 Then "Any "Nondeductible Contributions to Your IRA?" and underneath the question is says "Let us know if you made and kept track of any nondeductible contributions to your traditional IRA from 2020 or prior years." (This is not common)
I select "No, I did not make and track nondeductible contributions to my IRA". Because I opened IRAs in 2021, I don't have any IRA account before and did not made contribution to 2020.
3 Income Too High To Deduct an IRA Contribution

Those are what I saw. I could not get "Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible and Continue" as in the article you shared.

[FangxiaL · Accepted solution]

To check to see if Form 8606 is generated, go to Tax Tools >> Tools to open the Tools Center, click on Delete a form and see if you can locate the form.

If you did the backdoor conversion in 2021, you should have received Form 1099-R. 

[superlyc]

@FangxiaL Thank you. I see it 8606-T now, is it the same?

And without selecting 'delete', it will not do anything, right?

[FangxiaL]

Correct. You just need to make sure the form is generated.

[FangxiaL]

Correct.