Best Tax Software for Backdoor Roth

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rrscha22
Posts: 13
Joined: Tue Apr 26, 2016 10:03 pm

Best Tax Software for Backdoor Roth

Post by rrscha22 » Tue Jan 23, 2018 4:51 pm

I have struggled with finding a tax software that handles backdoor Roth contributions correctly. I would be happy with a program that would run me through everything and then let me go to forms directly and change them or add them as needed because the form for a backdoor Roth isn't hard, but everything I'm seeing online won't let me go to the forms and do direct input. What does everyone else do? Has anyone found a great software or method for managing taxes with a backdoor Roth?

Outside of that my taxes are pretty simple: married filing jointly, all W-2 income, home owner w/ a loan, own mutual funds in a brokerage account, donate stock to charity. I think the rest should be simple for a program, but that is what I need it to handle.

retiredjg
Posts: 31520
Joined: Thu Jan 10, 2008 12:56 pm

Re: Best Tax Software for Backdoor Roth

Post by retiredjg » Tue Jan 23, 2018 5:21 pm

I would think any tax software would allow you to do the forms manually.

See if the bottom portion of this link is helpful.

https://thefinancebuff.com/the-backdoor ... ow-to.html

BuckyBadger
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Joined: Tue Nov 01, 2011 11:28 am

Re: Best Tax Software for Backdoor Roth

Post by BuckyBadger » Tue Jan 23, 2018 5:24 pm

Not sure what the difficulty is? I've used TurboTax to do backdoor Roths for the past, maybe, 8 years.

livesoft
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Re: Best Tax Software for Backdoor Roth

Post by livesoft » Tue Jan 23, 2018 5:34 pm

I think the OP has not distinguished between something like Online-only TurboTax and downloaded Desktop TurboTax. I only use downloaded onto my own computer tax prep software and have never tried online versions. I use HRBlock and it works for me. I don't know about online HRBlock tax-prep software. I just don't believe that one should be using their phone to do their tax return.
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island
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Re: Best Tax Software for Backdoor Roth

Post by island » Tue Jan 23, 2018 5:45 pm

I've always used Turbo Tax, online version . The software does it correctly, but I sometimes don't. User error.
I've gotten tripped up on wording, overthinking the prompting questions, or fear I did something wrong when instead I need to be patient and wait a few more steps to see resolution.
Unfortunately I never write down what exactly trips me up so I can avoid it the following year. However the software changes slightly from year to year anyway, but good news is I can go to the tax form to see if it's on the correct line.
At least I've figured that out! :greedy

rrscha22
Posts: 13
Joined: Tue Apr 26, 2016 10:03 pm

Re: Best Tax Software for Backdoor Roth

Post by rrscha22 » Tue Jan 23, 2018 7:10 pm

I’ve tried the online ones and have had trouble, which might be my problem. I tried Turbo Tax online and it wouldn’t let me go to my forms and change and add a form. Is the functionality of the downloadable versions more robust? I just don’t want to buy something that won’t work.

Golfalot
Posts: 12
Joined: Mon Dec 26, 2011 10:06 am

Re: Best Tax Software for Backdoor Roth

Post by Golfalot » Tue Jan 23, 2018 8:26 pm

island wrote:
Tue Jan 23, 2018 5:45 pm
I've always used Turbo Tax, online version . The software does it correctly, but I sometimes don't. User error.
I've gotten tripped up on wording, overthinking the prompting questions, or fear I did something wrong when instead I need to be patient and wait a few more steps to see resolution.
Unfortunately I never write down what exactly trips me up so I can avoid it the following year. However the software changes slightly from year to year anyway, but good news is I can go to the tax form to see if it's on the correct line.
At least I've figured that out! :greedy
Too Funny. I am in the same boat. I've been using TurboTax online version for about 5 years. Every year, I seem to struggle through the TurboTax questioning, but it eventually ends up correctly on the Forms. If I recall correctly, I think TurboTax initially treats the IRA distribution as taxable income, but then in a later step, it properly reverses that and treats the conversion properly. I finally took some detailed notes on it that I dust off every year.

livesoft
Posts: 59276
Joined: Thu Mar 01, 2007 8:00 pm

Re: Best Tax Software for Backdoor Roth

Post by livesoft » Tue Jan 23, 2018 8:29 pm

rrscha22 wrote:
Tue Jan 23, 2018 7:10 pm
I’ve tried the online ones and have had trouble, which might be my problem. I tried Turbo Tax online and it wouldn’t let me go to my forms and change and add a form. Is the functionality of the downloadable versions more robust? I just don’t want to buy something that won’t work.
I don't know about TT, but I don't think it is a good idea to just change numbers in form view because you should be able to answer the interview questions to get the form to show the numbers you want. I seem to recall that if you override a number, then the software gives warnings and may not allow e-filing, but will let you print the forms and mail them in.
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crit
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Re: Best Tax Software for Backdoor Roth

Post by crit » Tue Jan 23, 2018 8:33 pm

It will help both you and the software if you skip ahead in the questions to where you report the tIRA contribution, then go back and report the distribution (conversion) "income".

Last year I initially had a mess from a recharacterization (from a direct Roth contribution back to a tIRA contribution) followed by the conversion, and I'm sure I answered the prompt questions correctly. When I erased everything IRA-related then started over with the contribution, then the other stuff, it got the 8606 correct.

PFInterest
Posts: 795
Joined: Sun Jan 08, 2017 12:25 pm

Re: Best Tax Software for Backdoor Roth

Post by PFInterest » Tue Jan 23, 2018 8:33 pm

rrscha22 wrote:
Tue Jan 23, 2018 4:51 pm
I have struggled with finding a tax software that handles backdoor Roth contributions correctly. I would be happy with a program that would run me through everything and then let me go to forms directly and change them or add them as needed because the form for a backdoor Roth isn't hard, but everything I'm seeing online won't let me go to the forms and do direct input. What does everyone else do? Has anyone found a great software or method for managing taxes with a backdoor Roth?

Outside of that my taxes are pretty simple: married filing jointly, all W-2 income, home owner w/ a loan, own mutual funds in a brokerage account, donate stock to charity. I think the rest should be simple for a program, but that is what I need it to handle.
All of them handle it correctly.

rrscha22
Posts: 13
Joined: Tue Apr 26, 2016 10:03 pm

Re: Best Tax Software for Backdoor Roth

Post by rrscha22 » Tue Jan 23, 2018 9:31 pm

retiredjg wrote:
Tue Jan 23, 2018 5:21 pm
I would think any tax software would allow you to do the forms manually.

See if the bottom portion of this link is helpful.

https://thefinancebuff.com/the-backdoor ... ow-to.html
This was quite helpful. Thanks for sending it along.

rrscha22
Posts: 13
Joined: Tue Apr 26, 2016 10:03 pm

Re: Best Tax Software for Backdoor Roth

Post by rrscha22 » Tue Jan 23, 2018 9:40 pm

livesoft wrote:
Tue Jan 23, 2018 8:29 pm
rrscha22 wrote:
Tue Jan 23, 2018 7:10 pm
I’ve tried the online ones and have had trouble, which might be my problem. I tried Turbo Tax online and it wouldn’t let me go to my forms and change and add a form. Is the functionality of the downloadable versions more robust? I just don’t want to buy something that won’t work.
I don't know about TT, but I don't think it is a good idea to just change numbers in form view because you should be able to answer the interview questions to get the form to show the numbers you want. I seem to recall that if you override a number, then the software gives warnings and may not allow e-filing, but will let you print the forms and mail them in.
I hadn’t thought about not being able to efile. This is why the wisdom of the forum is so helpful.

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