![]() Two Things in This Life Are Certain: Death and Tax Loopholes There shouldn’t be anything in the section titled Schedule 1, Line 32 IRA deduction. If you did have earnings between the contribution and the conversion, then they’ll still be taxable and will show up here. In the section titled 1040 Postcard, Line 4, you should see your Roth IRA listed under IRA distributions.Īs long as you didn’t have any earnings between when you contributed to your Traditional IRA and when you did your backdoor conversion to a Roth IRA, your Taxable amount should show as being zero. Click on Preview my 1040 on the left-hand side of the window.On the Tool Center screen, choose View Tax Summary.Click on Tax Tools on the left-hand side of the screen.If you want to make sure that everything went through properly, you can use the following steps to check on how you’ll be taxed on your Roth IRA: Once you’ve followed these steps, you should have successfully entered the information the software needs to properly calculate your tax return. Finish answering the remaining questions accurately until you get to the Your 1099-R Entries window, which will mean that you’ve finished reporting your backdoor Roth conversion.Next, select I converted all of this money to a Roth IRA account.Under What Did You Do With The Money From ?, choose I moved the money to another retirement account (or returned it to the same retirement account).Under Did You Inherit the IRA from ?, select No.You can either choose to manually input the details of your 1099-R form by following the on-screen instructions, or you can import it directly if you have a digital version.If you end up on the Your 1099-R Entries screen instead, then click on Add Another 1099-R. On the Your 1099-R window, click on Yes and then continue.Next, you tell TurboTax about the backdoor Roth conversion you’ve made. Answer the other provided questions as they apply to your current tax situation. ![]() ![]() Under Did You Change Your Mind?, select No.On the Tell Us How Much You Contributed window, fill in the amount you have contributed this year.Under Is This a Repayment of a Retirement Distribution?, choose No.Under Did you Contribute To a Traditional IRA?, select Yes.On the Traditional IRA and Roth IRA window, click on Traditional IRA.In TurboTax Online, click on Search, and enter IRA contributions.This guide is written for TurboTax Online, but if you’re using the desktop version, the procedure is very similar and shouldn’t cause you any confusion. Reporting a Backdoor Roth IRA in TurboTaxįirst, you need to enter the Non-Deductible Contribution made to your Traditional IRA. Let’s have a look at how to properly enter your backdoor Roth IRA conversion, so you can be sure that the figures you’re quoting are the right ones. If you don’t do it right, your numbers will probably not look right, with things like penalty charges for excess contributions showing up when they shouldn’t. TurboTax can be a bit finicky though, and if you convert your Traditional IRA into a Roth IRA, properly inputting the change is an involved process. But this can be a complicated process, which is why people use software like TurboTax to help them to keep track of their contributions and tax breaks. The earlier you start saving for your retirement, the more you’ll have to work with once you’ve removed yourself from the workforce.
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