-
Reporting a Backdoor Roth plus a Recharacterization
Contributed by: RachelR, FreeTaxUSA Agent, Tax Pro The Backdoor Roth strategy gets a bit more complicated when a recharacterization is also involved. A recharacterization is when you treat an IRA contribution (either Roth or Traditional) as though it was originally made to the other type of IRA. You accomplish a…
-
Backdoor Roth Plus a Recharacterization – Basic Scenario (2023 or earlier)
Contributed by: RachelR, FreeTaxUSA Agent, Tax Pro This article applies to 2023 and prior years. Here are the steps for entering a Backdoor Roth including a recharacterization. First: Add the 1099-R for the Roth to Traditional IRA Recharacterization 1. When your recharacterization from traditional to Roth is completed…
-
Backdoor Roth Plus a Recharacterization – Recharacterization Happens After December 31st (2023 or earlier)
Contributed by: RachelR, FreeTaxUSA Agent, Tax Pro This article applies to 2023 and prior years. Sometimes, your recharacterization isn't completed until the tax year is already over. As an example, let's say you made a Roth IRA contribution for 2023 during the 2023 tax year. You don't realize until March 2024 (when you're…
-
Are child care expenses paid to a family member eligible for the Child Care Credit?
Yes, child care expenses paid to a family member are eligible for the Child and Dependent Care tax credit if the family member isn't your spouse, the parent of your qualifying child, or your dependent, and you meet all the tests to claim the Child and Dependent Care Credit. Your family member will be responsible for…