How to Correct Backdoor Roth 1099-R When Contributed for both 2020 and 2021 in 2021

[isabelleleeson]

Hello,

I did a backdoor Roth IRA contribution in 2021 for both 2021 and 2020. I contributed 12k to my Traditional IRA, then converted all that to a Roth in early 2021 -- 6k for 2020 and 6k for 2021. 

Now, my 20211099-R is showing a 12k distribution, but my basis for 2020 in my 8606 is 6k. 

Right now the federal tax is incorrect. I see two options to make the software report the correct federal tax due: 

1. Change the IRA basis to be 12k.

2. Manually change the value reported in the 1099-R to be 6k. 

Anyone know how to correctly handle this situation in TurboTax? 

[DanaB27]

You will enter your 2021 nondeductible contribution and also enter your $6,000 basis from your 2020 Form 8606 line 14 when asked during the interview.

To enter the nondeductible contribution to the traditional IRA:

1. Open your return
2. Click “Deductions &Credits” on the top
3. Click "I'll choose what to work on"
4. Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
5. Select “traditional IRA”
6. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
7. Enter the amount you contributed $6,000
8. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
9. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” since you had nondeductible contributions before this tax year
10. Enter your $6,000 basis in the Traditional IRA from your 2020 Form 8606 line 14.
11. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount $6,000 (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

To enter the 1099-R conversion: 

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
5. Click "I'll Type it Myself"
6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
7. Click "Continue" and enter the information from your 1099-R
8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
9. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
10. On the "Your 1099-R Entries" screen click "continue"
11. Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had any nondeductible contributions in prior years.
12. Answer the questions about the basis from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs