Traditional IRA to Roth Conversion - Paying Taxes

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@RTKGILLOGLY wrote:

I completed a $10K Traditional IRA to a Roth IRA in 2019.  I received in 2020 a 1099-R for the amount of $10K (converted amount) and with the Code 7 on the 1099-R. Questions:

1. If this code is 7 - Normal Distribution on 1099-R, does that mean it was rolled up in my AGI on my TurboTax 2019 Taxes? Bottom-line - Where taxes paid on the normal distribution?

2.  Per other answers to questions, I have played around with the amount of money (using the two amounts of $30K & 45K).  Doing sample changes using these two amounts did not produce any change on my IRS refund money returned.  Why is there no change in the amount of my tax return?

3.  Does TurboTax have a Traditional IRA to a Roth IRA calculator similar to the one that Charles Schwab does?  The Charles Schwab calculator gave me totally different tax numbers than TurboTax did - ????????

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#1)   Unless you have any after-tax basis in the Traditional IRA then the Roth conversion is 100% taxable on your 2019 tax return.     Only if you had tax withheld in box 4 on the 1099-R would that be applied to all other W-2 and 1099 withholding to offset the tax.

#2)  I do not understand your question.

#3) No.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

I will attempt to clarify my original question #2.
Background - My original 2019 Federal IRS filing Conversion of Traditional IRA to a Roth IRA used $10K. In my filing, my 1099-R had Block 7 checked - Normal Distribution. This was added to my normal income. This was a conversion IRS transfer between my Ameriprise Traditional IRA to Roth IRA accounts. I was 62 years old at the time of the conversion.
In reviewing the posted TurboTax website forum answers to individual posted questions on the TurboTax website about Federal Taxes incurred in doing a Conversion of Traditional IRA to a Roth IRA, this is what I found (from HelenCI 2 & dmertz). The TurboTax website forum recommended that to verify your best conversion amount (to save paying additional taxes to the IRS), was to make TurboTax IRS Filing samples. In making these IRS Filing samples, the response stated that you place your suggested conversion dollar amount in the IRS Filing sample. My original official Federal IRS filing had used $1 OK. This was a Trad IRA - Roth IRA conversion IRS transfer between my Ameriprise accounts. This IRS Filing sample will verify what your incurred Federal tax will be. In complying with the TurboTax IRS Filing sample recommendation, I used two different amounts (using the two amounts of $30K & 45K) in the sample filings. Both sample proposed conversion amounts used were added to ordinary income (Block 7 - Normal Distribution). Doing these suggested IRS Filing sample filings (using the two amounts of $30K & 45K), neither sample amount produced any changes to my sample IRS taxes nor did the changed conversion amount impact my IRS refund money. The conversion amounts where added as a Normal Distribution & was added to my Adjusted Gross Income. Why is there no change in the amount of my taxes or my tax return in both samples? Did I not understand what the website forum suggested? Is there a step by step procedure to work through this recommendation on Sample filings for Conversion of Traditional IRA to a Roth IRA?

Follow-up questions for IRS Filing (both sample & Federal):

1.  If I completed to sample filings and the amount of money converted is 100% taxable, why did the TurboTax Premier Program no pick up on the sample amounts?

2.  So if I used TurboTax Premier 2019 & I filed the Trad to Roth conversion per the requirements of the program to include my 1099-R Block 7 Normal distribution, does this mean that the TurboTax Program did NOT properly calculate my taxes. 

PS Last time I got audits was because TurboTax failed to catch a block that must be checked or a date put in the block.  Took TurboTax over 6 years to fix the problem.  TurboTax basically said have a nice day!!!