Yes, then your wife's basis with $2,441 on line 2 is correct.
When you increased the amount you contributed in 2022 for 2021 then this increased the basis amount that wasn't available to be converted in 2021, therefore decreasing the amount of basis on line 5 on Form 8606. Line 5 is used to calculate the nontaxable portion on line 13.
The value entered under "Deduction & Credits" is different than the value entered under Wages & Income.
Yes, in the "Deduction & Credit" section you will have $1,000 as value.
Yes, in the "Wages & Income" section, you will enter $0 for the value.
Yes, in the "Wages & Income" section, you will enter $1,000 for outstanding recharacterization.
@dhuynh44
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