Hi all, I contributed $7000 to a traditional IRA and converted all of it $7003 to a Roth IRA. When answering the questions under "Deductions and Credits" it says I can only make $6720 either deductible or non-deductible, which I chose to elect all $6720 nondeductible.
The form says $6720 was deductible but $280 was already nondeductible. Where did Turbotax get this difference of $280 nondeductible vs $6720 deductible option? No where did I ever say only $280 of the $7000 was nondeductible. Thank you
If you have a retirement plan work and are over a certain income then your deduction is limited automatically. Please see IRA deduction limits for more details. It seems you are in the phaseout range where you can get a partial deduction. So part of your contribution is already automatically nondeductible ($280).
If you are performing a backdoor Roth then you correctly selected to make the rest nondeductible.