3035954
I did a first time ROTH conversion in 2022. In March 2022, opened a new Traditional IRA account. Contributed $6,000 to Traditional IRA and then converted $6000.10 to ROTH IRA very next day.
I have completed Federal Income (1099-R) and Deductions using the steps described @https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-ira-conversion/L7gGPjKVY_US_en_US.
Now I am doing my NJ state return. It is asking me following questions:
"Enter the following information to determine the New Jersey taxable amount of your Roth Conversion"
For Total Distribution of $6,000:
1. Value of Account on Date of Distribution: ?
2. Contributions Related to This Distribution Previously Taxed by New Jersey: ?
Could you please help if you have done this for New Jersey or other states?
Thanks a lot!
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1. TurboTax should automatically enter the value on the date of the distribution from the federal return.
2. This should be $6,000 since you just opened the account. This is your contribution to the traditional IRA that was already taxed in NJ.
"In most cases, your contributions to a traditional IRA were already taxed by New Jersey and are not taxable when withdrawn. However, any amounts you roll over from a traditional IRA to a Roth IRA that were not previously taxed by New Jersey must be included as income on your New Jersey return the year they are withdrawn from the traditional IRA." (NJ Division of Taxation)
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