Backdoor Roth Question

sneaky_butcher
sneaky_butcher Member Posts: 2 Newcomer
in Retirement Income

Hi,

I filed a backdoor roth last year and the process doesn't seem to be working for me this year. In both my wife and my 8606 forms, the nontaxable portion doesn't appear to work in line 13.

I filled out the forms following the instructions posted to the site. I input that I contributed $7,000 in 2025 and had $0 in the account to start the year. I then listed that I converted all the dollars to a Roth IRA and my income is too high to deduct the regular IRA contribution.

However, line 13 in form 8606 is showing up as $3,500, resulting in my tax obligation being large. Any guidance for why 50% of my contribution would get flagged as taxable?

My wife's form is the same, but it was her first year of doing a backdoor roth. I listed her basis as $25,500, her contributions as $7,000, and her total year-end value as $32,590. Similar to my account, her line 13 for non-taxable portion is half of her basis at $16,250.

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Answers

  • sneaky_butcher
    sneaky_butcher Member Posts: 2 Newcomer

    Nevermind, I just solved it. I was including the amount I rolled over in the total for the year-end value. After removing that, it fixed itself.

  • kiarab
    kiarab FreeTaxUSA Agent Posts: 192 image
    Hello Sneaky_butcher,

    I'm glad you were able to solve it. In situations like these, where it is likely that something is enter in the software incorrectly, I would recommend that you contact customer support because they will be able to look at your specific account and see what is going on and where the error may be.

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