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Level 3
posted Feb 28, 2022 4:43:07 PM

TurboTax not calculating non taxable portion in Roth conversion (taxing full amount)

In 2021 I converted part of traditional IRA to a Roth IRA. My traditional IRA includes non-deductible contributions (already taxed). In previous years, TurboTax calculated the taxable and non-taxable portions correctly. For 2021, TurboTax wants to tax the full conversion amount (which is incorrect). It appears TurboTax is not pulling information from 2020's Form 8606 although I selected 2020's tax returns when I started working on 2021's taxes. I do not see an option to enter a non-deductible basis.

 

(I have not filed.) 

 

Has anyone encountered this problem? If so, how were you able to solve it? 

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1 Replies
Level 3
Feb 28, 2022 5:00:18 PM

Resolved. 

 

User error. 🙂 

 

Answer: TurboTax does not pull from previous year's Form 8606. There are additional questions under Non-Deductible IRA contributions (which I blew through thinking they were asking about contributions in 2021). 

 

TurboTax has an opportunity to make the wording of Roth conversions less clunky!