If you do backdoor ROTH, DONT use Online version

[HikingTaxGuy]

If you are doing a backdoor ROTH don't use TurboTax online, you have to use the Desktop version. Doing this conversion requires form 8606 which the online version doesn't give you control to fill out.

In addition, to even see if TurboTax Online is filling out the form correctly, you have to pay. Then go to "Tax Tools' --> 'Print Center' --> Tax Return --> Scroll to form. In the desktop version, you can click the form at any time and adjust as necessary. I spent hours trying to figure out how to get TurboTax online to fill out form 8606 correctly. I think its a bug in the system or they simplified it too much or they just never thought to add this feature.

Intuit doesn't give TurboTax Online refunds. I had to buy twice this year. Dont be like me...buy the Desktop and don't fool around with the crappy Online version. 

[dmertz]

The online version produces the same result as the desktop version.  The issue with the online version is that you can't examine the details on the forms to figure out where you went wrong until you pay for TurboTax.

A backdoor Roth is nothing more than the entry of a traditional IRA contribution and a separate entry of a Roth conversion.  All versions of TurboTax handle each of these separate entries the same way.

[farnorcal]

No matter what i do, Turbo Tax says that i owe a penalty for my backdoor roth conversion.  Seems like others are having the same issue.  Any idea how to get around this? Hopefully they fix it soon

[AnnetteB6]

If you have followed the step-by-step instructions provided in the TurboTax help article (How do I enter a backdoor Roth IRA conversion?) but you are still having a problem, consider sharing a diagnostic copy of your tax return so someone can take a closer look and submit this experience for further review if necessary.  

The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.  

If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using and what states you are filing in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen.
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

@farnorcal 

[farnorcal]

I tried to follow the instructions, but the instructions are not up to date with what the desktop version shows for input screens.

[AnnetteB6]

After checking further, the instructions are being updated.  I created a simple test case in the desktop version of TurboTax, but did not have any issues with a penalty.  

If you are not comfortable sharing a diagnostic copy of your return, please share the exact message you are seeing with regard to a penalty along with where in the process you are seeing this message.  That information may be useful to try to help you.

@farnorcal 

[joetaxes]

I used the desktop version and followed the guide from this link: How do I enter a backdoor Roth IRA conversion? It all matches up in part I but part II - 2025 Conversions From Traditional IRAs to Roth IRAs, line 16 shows 7,000 and line 17 shows 7000 and line 18 shows 0. Is this correct? Last year when I filed part II was blank.

[DanaB27]

Yes, if you made a nondeductible traditional of 7,000 in 2025 and converted these $7,000 in 2025 then lines 16 and 17 would show $7,000 and line 18 would be $0, assuming your balance in all traditional IRAs was $0 on December 31, 2025.

Please note if you also made a traditional IRA to Roth IRA conversion in 2024 then Part II of Form 8606 must be filled out.  Did you indicate that you made a traditional to Roth IRA conversation when you worked on your 2024 return in TurboTax? Sometimes people accidentally select rollover instead of conversions, which would be incorrect for moving funds from the traditional to Roth IRA. 

@joetaxes 

[joetaxes]

Yes, I also did a backdoor in 2024 and indicated so on the TT desktop app. Thanks for confirming.

[Tuhy123]

Hi @DanaB27, I followed the instructions in this thread for how to enter a back door Roth using Turbo Tax Online Deluxe. The outcome of form 8606 looks correct, i.e. $0 for taxable amount on line 18. However, the form looks like it's only partially filled out. Lines 6-12 are blank, and lines 13, 15c, and 18 have an "*" icon that says "From Taxable IRA Distribution Wkst (per IRS Pub. 590-B).

Is this form filled out correctly?

Token 1329413

[RogerD1]

Yes, your Form 8606 is filled out correctly.  The worksheet referenced with the * is found in IRS Publication 590-B on page 17.  Using that worksheet determines the amounts on lines 15a and 18 of Form 8606.

Line 13 shows the non-taxable amount of the distribution, which is correct at $7,000.  The taxable amount of line 15c is also correct at $0.

The taxable amount of the conversion from Traditional to Roth IRA on line 18 is also correct.

[haungmz]

token: 1339461. online version

I followed the steps for backdoor ROTH with online version, filled 1099-R and selected converted all of it to ROTH IRA, but form 8606 was not triggered.

line 4b still shows 14,000 same as line 4a

can you please check

[RogerD1]

Were these 1099-R forms to report a conversion of a traditional IRA conversion made in 2025 for your 2024 non-deductible traditional IRA contribution?  If so, you would have had a Form 8606 filed in 2024 to report this contribution as non-deductible and you would have a basis in that IRA of the amount of that contribution.  When you enter the 1099-R in TurboTax, you will go through screens after entering the 1099-R data in your return to get to a screen with a heading of Traditional IRAs asking if you had nondeductible IRA contributions to your traditional IRA from 2024 or prior years?  You would answer that question yes.  On the next screen it will ask you for the basis in that IRA, which would be found on your 2024 Form 8606 on Line 14 in Part I - should be $7000.  Enter the amount of your non-deductible contribution from 2024 in that box, then Continue.  Once you do that for both of your 1099-R forms for each of you, then 1040 line 4a will be $14,000 and line 4b will be 0.

Also go back in Deductions and Credits where you entered your 2025 traditional IRA contributions and enter $7,000 for the total basis as of December 31, 2024 in that area also.

Since you made 2025 non-deductible contributions, remember that you will have a 2025 Form 8606 that shows a $7,000 non-deductible traditional IRA contribution for each.  These can be converted as a Backdoor Roth this year and reported on your 2026 taxes.

[AmeliesUncle]

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@HikingTaxGuy wrote:

If you are doing a backdoor ROTH don't use TurboTax online, you have to use the Desktop version.

buy the Desktop and don't fool around with the crappy Online version. 

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In my opinion, nobody should buy the crappy Online version.  It is a stripped-down version with less capabilities and often costs more than the desktop/downloaded version.

[user17736105978]

this is helpful and timely advice! Thank you so much for sharing with other Turbo tax users.  I was literally struggling with this part using the Online version.