Roth IRA conversion from non-deductible IRA?

Question

We converted to Roth IRA from our non-tax-deductible IRA in 2012. Because I had 401K and income exceeded the limit, during the last few years, all our contribution to IRA were non-tax-deductible IRA. Let's say:

Original non-tax-deductible IRA amount is $20,000 - which we had paid tax over the last few years

Value when we converted to Roth IRA is $25,000

I would expect to pay tax on $5,000, which we didn't pay tax before.

Does someone know how to fill out tax return form? I am using H&R Block (Tax Cut) TAX software. It seems it changes me tax on the whole amount of conversion, in the example, $25,000, instead of $5,000.

Answer 1

Favourite answer

You need to look at form 8606. That's where you track the non-deductible contributions.