Yes, once your characterization is complete, you will need to amend your 2024 return. I will give you the steps on how to amend and how to report the characterization. First, how to amend:
To amend your return using Turbo Tax Online.
- Log into Turbo Tax
- Select Scroll down Your tax returns & documents in your landing page.
- Select Amend (change) 2024 return.
To amend using the 2024 Desktop Software, go to:
- Federal Taxes
- Other Tax Situations>other tax forms
- Amend a return
Once you begin the amend process, here is how to report the characterization.
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Answer ‘Yes” on the “Roth IRA Contribution” screen
- Answer “No” to “Is This a Repayment of a Retirement Distribution
- Enter the Roth contribution amount
- Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
- TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
- On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" if you are thinking about doing a backdoor Roth. Otherwise select "No". (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).
If you need further assistance, you reach out again or contact Turbo Tax live help here.
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