cthomas428
Level 2

My client contributed $6000 to a Non-deductible traditional IRA in 2021 and immediately converted it to a Roth (so-called back-door Roth). She has no other IRAs. As expected, the 1099-R shows Code 2. The box is checked "Taxable amount not determined". And I checked the B-5 box at the bottom of 1099-R to show the entire amount had been converted to a Roth.

I have done these in the past (2019) and everything worked out fine.  But for this 2021 tax software, the entire amount continues to show up as taxable, no matter what I do.

What am I missing? Is it a quirk in the software (or a quirk in me?)  

Thanks for any pointers!

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