Originally Posted by Al in Ohio
I downloaded the 2020 tax year TurboTax and went through a preliminary Fed tax entry up to the ready to file tab. I didnít see anywhere specifically where to enter my $14,000 (same Institution-Fido) IRA re- characterization from my Fido tIRA to my ROTH IRA account. Can someone guide me on how this is done? I intended to see if I can convert more within the 12% bracket.
That's just a straight conversion, not a recharacterization. It would be a recharacterization if you put it back in the tIRA in the same year you converted it.
You enter it in the interview under Federal Taxes / Wages & Income / Retirement Plans and Social Security / IRA, 401(k), Pension Plan Withdrawals (1099-R). Enter a 1099-R, putting $14,000 in boxes 1 and 2, check the box for taxable amount not determined, enter code 2 in box 7 and check the IRA/SEP/SIMPLE box.
Answer "no" to the question about inheritance and then when you get to "What Did you Do With The Money From This Payer?" select "... moved the money to another retirement account..." and "... converted all of this money to a Roth IRA..."