contribute to traditional ira in 2020, converted to roth ira in 2021. how to report on 2021 tax?

[nancywho]

My husband contributed $6000 to traditional IRA in 2020, it was not converted to roth IRA until Jan 2021.  We also contributed additional $6000 in Dec 2021 and converted it to roth IRA in Dec 2021.  My 1099-R now says we distributed 12,000 in 2021 which is correct.  If I simply say that all of the money was converted to roth IRA in the 1099-R section, is that good enough reporting for both backdoor Roths?  

My 1040 4a IRA distributions says 12,000 and 4b says Taxable amount says $6000.  Makes me think I didn't do it correctly.  

Please help!

[JohnB5677]

The $12,000 reported on the 1099-R is correct.

Was the $6,000 contributed to the IRA in 2020 a nondeductible contribution?

Was the $6,000 contributed to the IRA in 2021 a nondeductible contribution?

If both were nondeductible 4b should be "0"

If one of the $6,000 was nondeductible 4b should be $6.000

If both contributions were originally deductible, 4a should be $12,000

[nancywho]

I believe both contributions are non-deductible as in they were both after tax money contributions.  How do I make 4b say 0 then?  I made sure when asked repeatedly what the value of the traditional IRA is on Dec 31, 2021 was $0.

[DanaB27]

The contribution for 2020 should have been reported on your 2020 tax return and if you made it nondeductible TurboTax should have created Form 8606 with a $6,000 basis in line 14. This basis is entered during the interview (steps 9 and 10 when you enter your 2021 contribution or steps 11 and 12 when you enter the conversion). 

To enter the nondeductible contribution to the traditional IRA for 2021:

1. Open your return
2. Click “Deductions &Credits” on the top
3. Click "I'll choose what to work on"
4. Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
5. Select “traditional IRA”
6. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
7. Enter the amount you contributed of $6,000
8. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
9. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” since you had nondeductible contributions before this tax year
10. Enter your $6,000 basis in the Traditional IRA from your 2020 Form 8606 line 14.
11. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

To enter the 1099-R conversion: 

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?"
12. Answer the questions about the basis from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

@nancywho