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Justone3
New Member

Backdoor Roth

I did a Traditional IRA to Roth backdoor. The 8,000 is showing up on the deductions and credits sheet on the Traditional and Roth IRA contribution line as 8,000. This is non-deductible. When i go in and delete it the taxes due increases. Is turbotax giving me a deduction? I'm not sure what I'm doing wrong. 

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1 Reply
MindyB
Employee Tax Expert

Backdoor Roth

From the information you provided, you are not doing anything wrong. To complete the backdoor Roth reporting correctly, you must complete two separate sections (income and deductions). If you have deleted the non-deductible contribution, but still included the 1099-R for the income that was created when you moved money out of the traditional account, it is expected that there will be tax because there is no offsetting non-deductible contribution. 

 

To check if the Roth conversion worked as it should, here is how you can check: go to Tax Tools on the left of your screen, choose Tools, then View Tax Summary. On the left of the screen, select Preview my 1040, and check that line 4a show the full distribution and line 4b is either $0 or a small amount if you had earnings in excess of your contribution.

 

To review the steps in full to create a backdoor Roth conversion, here is a reference: How do I enter a backdoor Roth IRA conversion?

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