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1/12/21. I put $12K into my newly openned tIRA. $6K for tax year 2020 and $6K for tax year 2021. A few months later filed my 2020 Taxes, my MAGI was more than $76,000, so no deduction for my 2020 tIRA contribution. FML. I realized 2021 would also get no tax deduction. After agonizing I decided to do a Roth Conversion of the "$12K". Submitted on 11/8/21. It was $14,583.20. My understanding at the time was that I'd owe taxes on the "gains" $2,583.20. But my 1099R from Vanguard shows "2a Taxable amount $14,583.22". Is there a way to fix this or did I just mess up irreversibly? My thought is I'm paying taxes on the $6K from both 2020 and 2021 (aka no deduction), now I have to pay again on the Roth conversion?
For note: 2022 Roth IRA contribution is already in, MAGI should be below $129K. Also single.
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