Adding nondeductible 1099-R reduces refund
I'm using TurboTax to do my taxes for FY2018.
I make nondeductible (after-tax) contributions to my Traditional IRA, and once the funds settle (but before investing the funds), I convert the entire amount to a Roth IRA.
After putting the info of my 1099-R form in TurboTax, it told me that I don't owe any taxes on this money. However, the amount I was supposed to get refunded for state is reduced after inputting this form. Federal stays the same.
Does anyone know why? Will the state amount go back to the original number once I go through the entire process?
(1)1 Comments
Sorted by latest first Latest Oldest Best
This issue is fixed once I go through the "State" section. TurboTax asks how much of the ,500 distribution has already been taxed by the state. If you say all of it has already been taxed (which is true), the numbers go back to the original ones.
Problem solved!
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2025 All Rights reserved.