Could anyone know the answer please advice? Thanks in advance! I was eligible for Roth IRA, contributed $6000 to the traditional IRA and rolled over to Roth IRA right away last year. 1099R said $6000.06 is taxable, which means I have to pay tax on $6000.06. But this $6000 is after-tax already, I should not be taxed again when I contribute to Roth IRA. What should I do when I file tax return to avoid being taxed again? If I have to be double taxed, I'd rather reverse the conversion. What's your advice? Thanks very much! I just noticed this 1099R today, and I need to amend tax return on Turbotax. Does this affect state and local tax return? If so, is there anything I need to wait for before I amend the state tax return?
I was eligible for Roth IRA, contributed $6000 to the traditional IRA and rolled over to Roth IRA right away last year. 1099R said $6000.06 is taxable, which means I have to pay tax on $6000.06. But this $6000 is after-tax already, I should not be taxed again when I contribute to Roth IRA. What should I do when I file tax return to avoid being taxed again?
If I have to be double taxed, I'd rather reverse the conversion. What's your advice? Thanks very much!
I just noticed this 1099R today, and I need to amend tax return on Turbotax. Does this affect state and local tax return? If so, is there anything I need to wait for before I amend the state tax return?
Thanks mm so much!