AGI on 1040 is $331,673, Roth conversion amount $241,608, IRA contribution $14,000.  Lacerte allowed the $14,000 deduction and worksheet points to publication 590 for not including the conversion in the calculation of MAGI.  I know it's strange that they converted to a Roth and then made the contribution to the IRA.  I think they decided to do that once they found out how much the conversion cost them.  I believe that Lacerte is wrong and just very surprised that their calculation was not correct.