Turbotax software has a bug in their software that determines taxable value of ROTH IRA Distribution with the following data.
2022 1099-R
Box1: 53500
Box 2b: X (selected)
Box7: T
My data:
2020 2021 2022 Total
Roth Conversion basis17200 30000 30000 77200
The TT Premier "easy step" software walks me through the query used to fill in the Form 8606. It only asks for cost basis for 2020 and 2021. So I end up with a total cost basis of 47200. This leaves me with a taxable amount of $6300.
TT Easy step never asks me to enter a cost basis for 2022. I dug around and found the worksheet they use for the calculations, and saw a field for “2022” Roth conversion but it is a “read only” field.
I downloaded the IRS Form 8606 with instructions and I manually filled out the form. It shows that I have $0 taxable. All 53500 is tax free.
I used the Free online software and it also provided me with the correct results.
I tried 3 times to reach someone but kept getting cut off.
