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backdoor roth in TurboTax --- counts as income??

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  • DMFA
    replied
    Probably had to do with checking 1099-R box 2b or making sure the "converted all" button was clicked.  It's out of the way and can be confusing when the 1099-R is saying that the whole this is a taxable distribution when it isn't, and then TurboTax telling you that it isn't common.

    ...sure, I might as well be the fourth person to link to this page: https://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html

    Leave a comment:


  • canadianoutlaw
    replied
    yes, very easy to make this mistake in TurboTax; silly really.

     

    WCI links to the finance buff article at the end of his tutorial.

     

    https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/

     

    https://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html

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  • canadianoutlaw
    replied
    duplicate

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  • EJ at Dads Dollars and Debts
    replied
    This is my favorite tutorial...not sure it is what you used.

     

    https://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html

     

    Also, sometimes it's worth putting it aside for a night and trying again the next morning. That is what I had to do.

    Leave a comment:


  • mamaham
    replied
    I realize that this post is older now, but I had the same issue this week.  In case anyone searches, this might help.

     

    After spending over an hour on the phone with TurboTax with no solution and then more time searching and reading these forums... I think I finally found how to use TurboTax to do the backdoor roth.

     

    https://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html

     

    Posting here to hopefully help someone avoid the extreme time waste that I have been spending this week on this very topic!!  Thanks!!

    Leave a comment:


  • DMFA
    replied
    It's not *really* a distribution, but it would be reported on 1099-R.  It's a non-deducted contribution and a conversion.

    • On form 1099-R, box 2a (taxable amount) probably says $5,500, but the box "taxable amount not determined" in box 2b should be checked.  It's not taxable if it was made with non-deducted funds.

    • If form 8606 is completed properly, line 15 (taxes on the "distribution") should be zero, and then line 18 (taxes owed on conversion) should also be 0.


    I don't use TurboTax, but make it usually requires making sure the box was checked.  I accidentally didn't check it when I filed using H&R Block's online software and had a similar problem until I double-checked and fixed it.

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  • bobbybee22
    replied
    filled out the forms according to harry sit's tutotial and back checked by with the WCI backdoor tutorial

    so it turns out that on TurboTax there's a screen that includes the IRA/roth $5500 as income (as my OP shows) but it's not counted as income for tax purposes.  its confusing, but I figured it out.  in case anyone else out there noticed that too, it shouldn't be a worry.

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  • Peds
    replied
    how did you fill out the forms?

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  • bobbybee22
    started a topic backdoor roth in TurboTax --- counts as income??

    backdoor roth in TurboTax --- counts as income??

    I followed the tutorial on the website on how to enter a backdoor roth on the 8606 form (been doing so for years).  In TurboTax, though, it seems to be counting my backdoor roth as *extra* income, which doesn't seem right.  Is there something wrong here?

    Thanks!



    Income


    Wages and Salaries                    ...  $135,000

    Interest                                     ...  $2,000

    Partnership,Scorp,etc                  ...  $3,000

    IRA distributions - nontaxable       ... $5,500


    Total Income                               ...  $145,500


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