Correctly Entering A Backdoor Roth

[troy]

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?

[rbynaker]

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.

[Just-Lisa-Now-]

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.

[Skylane]

@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

[qbteachmt]

"1. Enter the traditional IRA contribution on the IRA worksheet as nondeductible"

Need that detail.

[Jim-from-Ohio]

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