This is a quick video of me filing taxes for the backdoor roth using FreetaxUSA. #notsponsored but hopefully some of you will find it helpful if you’re doing the same….(read more)
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If you are a high earner and cannot make direct contributions to a Roth IRA, a backdoor Roth IRA may be for you. However, it is important to properly file your taxes to avoid any penalties or headaches down the road. FreeTaxUSA is a popular and inexpensive tax preparation website that can help you with this process.
First, make sure you have completed both the traditional IRA contribution and the conversion to a Roth IRA. Then, when you are ready to file your taxes, start by creating a FreeTaxUSA account or logging in to your existing one. On the main page, select “Start a New Tax Return” and follow the prompts to input your personal information and income details.
Next, navigate to the “Deductions & Credits” section on the left-hand menu and select “Traditional IRA Contributions.” Here, enter the amount you contributed to your traditional IRA for the tax year in question. Then, navigate to the “IRA Conversion to Roth” section and input the amount you converted from your traditional IRA to your Roth IRA.
Once you have entered all relevant information, FreeTaxUSA will automatically calculate any taxes owed on your converted amount. If you made the conversion in the current tax year, make sure to select the option for “Current Year Conversion” to ensure accurate calculations.
One thing to note is that if you have any other traditional IRAs, FreeTaxUSA will calculate taxes owed on your conversion using a pro-rata formula. This formula takes into account the total amount of traditional IRA funds you own, not just the amount you converted. This can result in higher taxes owed on your conversion, so make sure to check all traditional IRA accounts and consider converting them to a Roth as well.
After you have inputted all necessary information, review your return to ensure accuracy. FreeTaxUSA offers a free federal tax filing option for those with simple tax returns and also offers affordable pricing for those with more complex filings.
In conclusion, filing taxes for a backdoor Roth IRA using FreeTaxUSA is simple and straightforward. Make sure to properly input all contributions and conversions to avoid penalties and consider converting any other traditional IRAs to a Roth to minimize taxes owed. With the help of FreeTaxUSA, you can confidently file your taxes and reap the benefits of a backdoor Roth IRA.
Thank you so much for the step by step guide, i was freaking out halfway through
Thanks Tu. This is word-for-word exactly what I needed. I freaked out at the part you said I would freak out haha.
super helpful video. Thank you so much
Super helpful thanks!
Thank you. I got confused because I did not know "backdoor roth is NOT a recharacterization" ! Man you saved me a lot of time.
Really helpful video, thank you for making it.
thank you!
Thanks for the informative video, Tu. Can I ask, on your 1040, what is shown on line 4a and 4b? Mine are both showing 6,000, but the my entire IRA contribution was with after tax dollars. I would expect 4b to show 0. I'm also have the issue with the 8606 form as you describe at 8:45 of your video. My W-2, box 13 is not checked (which is accurate), but I assume my 8606 form, part 1 should be filled out to reflect all 6,000 as nondeductible contributions. Any advice would be appreciated.
Very clear and helpful video. Thank you!
my man!
Thank you, I used this today on my 2022 taxes. Very helpful video.
This is amazing. Thank you!
Can you do another backdoor roth video but for 2022 tax year?
Thanks this was extremely helpful, I would not have figured it out and had already tried several changes. This is a great walk through the labyrinth of filing taxes with a backdoor Roth ! Thank you for making this video !
This video deserves WAY more views than it currently has. C'mon, YouTube algorithm!
sweet video! you helped me for my 2021 taxes.
This is so helpful! Thank you so much for taking the time to do this.
This was extremely helpful. I've now used this as a guide for two years in a row!
thank you, i was freaking out
So glad you made this video. Thank you, thank you!
Thanks a million for this post. I was right in the middle of a freak out moment. You saved the day!
Thanks for this. The piece that confused me was saying no to the question of whether I withdrew from my traditional IRA. I know it was a Roth conversion, but I think the technically correct answer to that tira withdrawal question is yes. Maybe I was just overthinking it.
This is so helpful. Thank you so much.
Thank you!