Entered my Backdoor Roth at two places, taxes won't go away after taking the duplicate out.

[taxsavvy]

I had a backdoor Roth in year 2022. I entered my 1099-R and was able to report it correctly. However, Turbo tax asked me for my IRA contribution again while calculating Tax Breaks and i entered my IRA contribution again followed by Conversion to Roth for backdoor. This added about $200 to my taxes, which doesn't sound right since all the money was contributed aftertax and Backdoor Roth was converted the same day. 

Since the 1099-R was correctly reported, do i need to enter the IRA details again under tax breaks. If yes, what how should it be entered to avoid adding tax liability. 

[DanaB27 · Accepted solution]

You only enter an IRA contribution if you made an IRA contribution for 2022.

If you had no earnings and your traditional IRA was empty on December 31, 2022, then the conversion of the nondeductible traditional IRA contributions will be nontaxable and line 4b will be $0 (assuming this was your only Form 1099-R).

If you made a nondeductible IRA contribution for 2022 then please follow these steps:

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
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” if you had nondeductible contributions before this tax year
10. Enter your basis in the Traditional IRA from your 2021 Form 8606 line 14 (if you had a basis in the prior year)
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?" if you had any nondeductible contributions in prior years.
12. Answer the questions about the basis from line 14 of your 2021 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs