Roth Recharaterization

Yes, once your characterization is complete, you will need to amend your 2024 return. I will give you the steps on how to amend and how to report the characterization. First, how to amend:

To amend your return using Turbo Tax Online.

1. Log into Turbo Tax
2. Select Scroll down Your tax returns & documents in your landing page.
3. Select Amend (change) 2024 return.  

To amend using the 2024 Desktop Software, go to:

1. Federal Taxes
2. Other Tax Situations>other tax forms
3. Amend a return

Once you begin the amend process, here is how to report the characterization.

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “Roth IRA”
5. Answer ‘Yes” on the “Roth IRA Contribution” screen
6. Answer “No” to “Is This a Repayment of a Retirement Distribution
7. Enter the Roth contribution amount 
8. Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
9. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
10. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" if you are thinking about doing a backdoor Roth. Otherwise select "No". (If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

If you need further assistance, you reach out again or contact Turbo Tax live help here.

Hi DaveF1006, Thank you!, I haven't filed my taxes yet, I am waiting for the recharacterization to complete and file my tax before 4/15/25, will the steps you mentioned stay the same? Thanks again for your help, I really appreciate the help. Sabina