TurboTax is flagging one of two backdoor Roth IRA's as taxable

[Doornail4151]

This is my first year using TurboTax.

My wife and I each contributed $7K to a backdoor Roth in 2022. We've been doing this for several years. There is no difference between the two transactions. However, when I enter my 1099-R information, TurboTax handles it correctly as non-taxable. Entering my wife's 1099-R, however, shows up as taxable income. We have:

- Followed exactly the same steps to enter each 1099-R

- Have deleted the 1099-R's and re-entered them

- Have tried to enter my wife's 1099-R first, after which TurboTax shows the $7K as taxable.

The worksheets behind each of the 1099-R's are different and TurboTax does not allow us to enter values into my wife's 1099-R worksheet to make it match the worksheet for my 1099-R.

I am retired. My wife is not.

Any ideas for where to look? This shouldn't be this difficult.

[DanaB27]

To confirm you entered your and your wife's traditional IRA contributions and made them both nondeductible? Did you verify the IRA/SEP/SIMPLE box is checked on the Form 1099-R entry?

Please review your contribution entries:

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

If this doesn't help. What is on your wife's lines 1 and 2 of Form 8606? What was her value in all traditional/SEP/SIMPLE IRAs on December 31, 2022?