I just finished my 2012 taxes using the online version of Turbo Tax. I used the backdoor Roth technique in 2012 and as part of that I rolled over the pre-tax amounts from my traditional IRA into my 401k plan. This rollover into a qualified plan is not taxable. I received a 1099-R stating the amount of the rollover with the Box 7 Code of G.
But when I entered this information into Turbo Tax it went flakely
. For a long while it treated the amount as taxable and indicated I owed $80,000!. But by the time I finished the return it correctly showed it as non-taxable and that I would receive a $2000 refund. I checked the forms several times to make sure it was correct.
But when I filed the program suddenly flipped back to treating the rollover as taxable!!!!! Now the IRS is expecting me to pay $80,000
Searching their online help brings up an acknowledgement of a bug: http://turbotax.intuit.com/support/iq/Retirement-Plan---Social-Security/1099-R---Incorrect-calculations-for-Roth-Conversions-with-Code-G/SLN66002.html?_requestid=58386
If you are using the desktop version and catch the error in time you can fix it. You are apparently screwed if you, like me, are using the online version. Since I've already filed I guess I have to wait until the software is fixed (they say a fix is schedule for 2/28/13) and file an amended return - correct?