When you convert your funds from a traditional IRA to a Roth IRA you should receive form 1099-R from the financial institution. Since a conversion to a Roth is a taxable event, the distribution will be taxable and included in your income. To enter form 1099-R go to:
- Federal Section
- Income
- 1099-R, RRB-1099, RRB-1099-R, SSA-1099
- Add or edit 1099-R
After you enter form 1099-R, you need to navigate to Form 8606 to report your conversion amount. To find form 8606 go to:
- Federal Section
- Deductions
- Adjustments to Income
- Nondeductible IRAs Form 8606
- Enter your converted amount under “Net amount converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2020”