1099-r for 12000. Taxability unknown. 6000 from 2021 paid first quarter of the 2022 and 6000 for 2022. Bkdr Roths. If you input 12000 6000 is taxable. Why ?

[rbynaker]

On the 2021 return you would have filed Form 8606 reporting the $6,000 TY2021 Non-deductible IRA contribution, establishing a contribution basis of $6,000.

On the 2022 return you report another $6,000 TY2022 Non-deductible IRA on Form 8606, bringing your total contribution basis to $12,000.

On the 2022 return you'll indicate the FMV of IRAs on 12/31/22 of $0.  That should allocate all of the basis to the $12,000 conversion amount on the 1099-R.

If your question is more along the lines of "how do I enter this in the software", that might be a question for @George4Tacks 

[qbteachmt]

"6000 from 2021 paid first quarter of the 2022 and 6000 for 2022"

All at once? In and out, all at the same time? Let's remember that Backdoor is the same as Rollover/Conversion of basis and only basis. That's what makes it nontaxable.

"That should allocate all of the basis to the $12,000 conversion amount on the 1099-R."

What matters is:

When they put in any of this money, was there any other money in their Traditional IRA account that was the first destination? As long as there was no money in the Trad IRA each time they put in each $6k, then immediately converted (no earnings), you might simply have overlooked entered the basis, as noted.

"Bkdr Roths"

Plural?

If they put this into an existing or separate (not new)Trad IRA account(s), and/or there was any delay between contribution and rollover, then there is the consideration of pro rata computation against earnings, against previous pre-taxed amount, and other considerations the same as any conversion.

In other words, if they put $12k in one existing account and took $12k out, but there were other funds present from anything other than basis, you can't assign which $12k got rolled. It's pro rata.

[Ptboat]

How do I get to Gerge4Tacks ?

[George4Tacks]

He is right here. Your question does not really make sense. You state "taxability unknown". Once you really figure out your question, this link might help you.

https://proconnect.intuit.com/community/proconnect-tax-discussions/discussion/regular-ira-to-roth-ir...

P.S. you contact anyone by just putting the AT SIGN before their user name. Like @Ptboat 

[qbteachmt]

"You state "taxability unknown"."

That could be from reading the code(s) on the 1099-R.

A 1099-R is informational. It is for money Out. The entity issuing the funds won't necessarily know what is happening with them, if they were rolled (for an indirect) or used, or used and then replaced as rollover in the allowed timeframe. They might not know if the person did a partial backdoor with the distribution.

Being unknown on the 1099-R isn't an issue. It's up to the taxpayer to tell the preparer what was done with the funds. And it's up to the preparer to do the due diligence to prove it; ask for the Form 5498 (for money In) that reflects the same amounts.

Example: The taxpayer took the funds personally, then presented that to the Roth brokerage. There would be required withholding in an indirect rollover, so the amount the taxpayer converted via backdoor needs to be gross amount distributed, or there likely is tax on the portion withheld, even though the taxpayer gets it refunded later.

It can be a direct transfer, but they might not know the type of account it was sent to.