@DanaB27
Hi if possible are you able to verify if this 8606 form looks correct please?
To recap:
- $1237 recharacterized in 2020 ($1000 contributed in 2020)
- $1000 directly to traditional in 2020
- $1000 directly to traditional in 2021 for 2020
- $1317 recharacterized in 2021 for 2020 ($1000 contributed)
- 1099-R code = N ($1237) for 2020
- 1099-R code = R ($1317) received in 2021
- 1099-R traditional ($2203) for 2020
- No prior traditional IRA basis
Line 1 = $4000
Line 2 = $0
Line 3 = $4000
Line 4 = $1000
Line 5 = $3000
Line 13 = $2203
Line 14 = $1797
Line 16 = $2203
Line 17 = $2203
Line 18 = $0
Can you please explain why line 14 is $1797. I see it's $2000 - $203 but just curious what this means going forward. Am I supposed to get taxed on $203? Because line 18 = $0. Thank you!!!
