US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.

KaLogain: Dec 29, 2004; I got her number. How do you like them apples?; Cybernetic Crumb

I did a backdoor Roth IRA last year. I am above the income limits. I had my taxes done by a 3rd party, and they have marked this as a Traditional IRA distribution, and they added this as income. They also did not mark the original IRA contribution as tax deductible. Is this the correct thing to do here? it increased my taxable income by 6500 and increased my taxes paid by my 32% tax bracket.

Fees like I'm getting double taxed here for that money. Any ideas?

# ¿ Mar 22, 2024 03:09

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# ¿ Apr 28, 2024 14:12

KaLogain: Dec 29, 2004; I got her number. How do you like them apples?; Cybernetic Crumb

Jobert posted:

Do you have the 1099-R from the traditional IRA? It will have the total amount listed on 2a as taxable amount, but then will also have 2b "taxable amount not determined checked".

So what did the preparer put on 1040 line 4a? That should have the total distribution and then 4b should be 0.

Unless you had an existing balance in Traditional IRAs before the backdoor. That would create taxable income also but would be on form 8606.

They left 1040 a blank, and put the $ 6500 on line 4b. The 1099-R does have the $6500 on line 2a of the 1099-R as 6500 an 2B was marked taxable amount not determined checked.

Did not have a balance in the Tradition IRA before the original deposit.

# ¿ Mar 22, 2024 05:33

KaLogain: Dec 29, 2004; I got her number. How do you like them apples?; Cybernetic Crumb

Ungratek posted:

Did you specifically tell him that you contributed to your Trad IRA and then did a backdoor conversion? If not, he probably just reported the 1099-R straight up without thinking too much about it.

I did, but now I'm thinking he may not be very familiar with Backdoor Roth IRAs.

# ¿ Mar 22, 2024 05:33

The Something Awful Forums > Discussion > Ask/Tell > Business, Finance, and Careers > US Income Tax Thread: Bank error in your favor! GO DIRECTLY TO JAIL.