IRA Information Worksheet - I didn't enter Roth conversion correctly in 2022. How do I correct that?

[Questionasker]

When reviewing my 2023 form, I noticed that for 2022 I didn't properly specify in the TurboTax step by step interview that part of the Traditional IRA withdrawal was put back in a retirement account as a Roth Conversion, and therefore on the IRA Information Worksheet, Line 35 it didn't list any amount for "Conversion Contributions Taxable at Conversion" for 2022.  (For 2023 return I entered correctly this year.)  The total amount of Traditional withdrawals is correct, but the running total of Roth Conversions is missing the 2022 amount on the IRA Information Worksheet.  How do I correct that?  What could be the impact of not doing so?

[DanaB27]

You will need to amend your 2022 tax return. Please see How do I amend my federal tax return for a prior year?

To enter the 1099-R conversion in TurboTax Desktop: 

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 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

Conversions are taxable unless you had a basis in the traditional IRA.

[Questionasker]

Apparently I didn't do step 8 & 9 correctly in 2022. The correct amount of tax was paid, however, some of the withdrawal amounts from the traditional IRA were converted to a Roth, but the IRA information worksheet doesn't reflect the Roth conversion amount. Also, looking back farther, the cumulative conversion amounts for 2019, 2020, 2021 were incorrectly listed as 0 on the IRA Information Worksheet for 2019, 2020, 2021, HOWEVER on the 2022 IRA Information Worksheet a correct cumulative total is listed. Is that something that Turbotax had allowed me to correct? If so, is that the solution to my original question? In other words is there a way to correct the amounts on the IRA information worksheet? The IRS has received the proper taxes from my traditional withdrawals each year, however the history in my TurboTax IRA Information Worksheet is not properly distinguishing all of those amounts which were converted to a Roth.

[DanaB27 · Accepted solution]

Yes, if you paid the correct tax in the prior years and the taxable conversion was included on line 4b of Form 1040 then you only need to correct the Roth basis that TurboTax is tracking for you.

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select  "Roth IRA"
4. On the "Did You Open a Roth IRA Before 2023?" answer "Yes"
5. On the "Let Us Track Your Roth IRA Basis" screen answer "Yes"
6. TurboTax will ask you follow-up questions in regard to net contributions and conversions.