There are no more clear questions from that point on - all IRS mumbo jumbo jargon - rather than just ask if the Tax has been paid and if so When. (Layman's terms...like these programs are supposed to be.)
Which is what I posted on the Community and explained to Rep on the phone after Chat had directed me to another set of instructions in Community, which did the exact same thing the Instruction link emailed to me suggested, but in reverse order: put the 1099-R in first, then the Trad IRA interview, mid-interview no more instructions.
NONE OF THE FOLLOWING IS ADDRESSED IN YOUR INSTRUCTIONS:
I have tried several selections regarding Basis and Nondeductible / Deductible - without definitions or Examples to go by - to try and force it to stop taxing me a 2nd time for Converting same dollars already taxed in 2020, from the initial 12/21/20 Distribution which generated a 2020 1099-R/Code-7/2a Full Amount of Distribution Taxable.
Also, had to outright lie to it about a prior year 8606, which isn't even in my 2020 1040 (generated by Kredit Karma), even though the entire Traditional IRA distribution is on line 4b of my 1040 - which forced me to Pay. (Which was ok - since it was going back and Converting into After-Tax ROTH anyway, plus IRS requires it be paid in same Quarter it's deposited as well.)
I have "Paid in Full." But zero questions about any "PAYMENTS" in the Interview. Zip. Nothing about REQUIRED payment within the Quarter regarding a ROTH IRA.
I also tried the additional Interview process - same jargon, no definitions, no examples. No scenarios to go by, like when the 60-day Rollover (and Conversion) crosses over year-end. Hello.
As stated on the Community Instructions set - its clear as mud. (Handle: NotPayingTwice)
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Honestly, I could be doing it directly onto IRS Forms with their instructions with as much ease. In less time.
All I have here is a SIMPLE CONVERSION (allowed within 60-Day Rollover). Traditional IRA had $45k (all $ from 401k at old job), withdrew it all, paid tax on it all, sent $15K back to same bank, who Converted it to ROTH IRA.
I believe the PROBLEM may be that I withdrew it on 12/21/20, and sent it back on 2/10/21 - and the year-end cross-over has made a mess of this on all sides. The bank termed it as an "Indirect Rollover" - says that process has generated the second 2021 1099-R/Code-7 to show 60-day Rollover was legit (put back in the Traditional IRA, meeting the 60-day requirement), but then the transfer back out to ROTH kicked out second 2021 1099-R for $15k, which makes it look like I was distributed $60K! They say, since I paid the tax and they didn't withhold it, their job is done. And since its in-house there's no 5498 IRS form to show that I didn't actually get a distribution (check) and walk it to another institution. (If they gave me $60K I'd gladly pay the tax! But the 2nd 1099-R is the same $15K in the original $45K on 12/21/20, so in my opinion Code 7 is wrong, as well as box 2a.)
REGARDLESS, when I did this process before even entering the 2021 1099-R - it racked me up for the taxes in the Traditional IRA Interview, as stated above.
A $150 Upgrade will not change your Interview/Knowledge Base process and how it's calculating this - it never asks, and if it does ask IF I PAID THE TAX, then where? It's NOT in these instructions. There's no Form/Line# reference to research what its doing with my answers. Or could do a mock-up on IRS Free site and then fill it in accordingly.
This Should work EASILY - not make you and IRS rich!
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I used Quickbooks and Quicken Home and Business over 20 years - been with ya'll a long time on that platform. My first job was HR Block, I've been doing my own taxes for 55 years...and I'll go back to paper before I pay you to tell me to pay IRS again.
I'm not your average customer, was a Systems Manager on several Mainframes for many years, fixing BUGS in bad code at 3am at Denver Federal Center and EROS Data Center before many of your were born, and then many years as Sr. Programmer Analyst and Consulting large Corporations making $65/hr at turn of the century. I'm a retired dinosaur - but I could still punch so many holes in this system you would be coding until 2025. People, including Programmers like myself, are trying to report bugs, but you give them no direct means to.
One Rep suggested I just don't report the 1099-R at all. Wow. Don't your Expert know that's electronically transmitted to IRS and they will FLAG it when it doesn't show up. Which IRS couldn't make this any screwier if they tried...and apparently ya'll can't seem to untangle it either.
Honestly, switched because of the Coinbase connect and discount, but can't proceed at this juncture. Going back to Karma and try it there to see if they can handle a Conversion.
