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DatWunGuy
Returning Member

How to "explain your recharacterization"

I recharacterized my entire Traditional IRA into my roth IRA last year. This year I received a 1099-R from my vanguard and I believe I need to fill out a form 8606. To my understanding, Turbo Tax home and business fills out this form for me, but I am stuck at a screen where I need to "explain my characterization."

 

 

  1. How do I explain my characterization? (As in what exact wording do I use? Is there an example of the exact wording?)
  2. Do I need to calculate anything on interest, gains, etc. or is that handled by Turbo Tax?
  3. Does Turbo tax have a call center in which we can call in and ask these questions?

Thank you

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1 Reply

How to "explain your recharacterization"

If you are using CD/Download version proceed as follows.

Open form 1040 in Forms Mode.

Click on the dollar amount of your IRA or 401k.

A magnifying glass will appear. Click on that.

This will take you to a Worksheet.

Look for the tiny "Explain" button. Click on that.
the form will open.

 

To explain, just tell IRS what you did, briefly.

Include dates and amounts.

 

Note: instructions based on TurboTax 2018. It should still be the same in 2020.

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