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Taxpayer and spouse each contributed $6k to a traditional IRA and immediately converted to Roth for the same amount.
MFJ
No other IRA balances.
I understand you must enter the contribution on the IRA contribution worksheet, and then enter the corresponding 1099-R as well.
However, where in the software do you "link" it all together so that there is no deduction, no taxable income from the 1099-R, and that the backdoor conversion is fully recognized?
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On the IRA Info Wks for each of them you need to enter $0 as FMV at year end. That should throw all of the $6K basis to offset the 1099-R income.
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Having a non-deductible IRA contribution on the 8606 triggers (in the background) that 1099R conversion to be non-taxable, you shouldnt have to do anything special for it to happen.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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@Jim-from-Ohio provided these instructions last month
here is how I do it and it works great for me
1. Enter the traditional IRA contribution on the IRA worksheet
2. If then flows naturally to form 8606
3. Enter 1099-R Worksheet, make sure IRA box is checked
4. Scroll down to B-5, check that box that rolled over to Roth
The End
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"1. Enter the traditional IRA contribution on the IRA worksheet as nondeductible"
Need that detail.
Don't yell at us; we're volunteers
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If they make too much for a deductible IRA and the retirement box is checked on the W-2 worksheet that should make it nondeductible