Hello @DanaB27 @AnnetteB6
I have tried to go through this process several times but there is still something not working for me. I contributed $6,000 to a traditional IRA with all post-tax money and did the conversion to a Roth IRA, however when following the steps outlined in this thread I'm still encountering the software considering the $6,317 (amount on my 1099-R) that was eventually converted as other taxable income when I've already paid income taxes on these funds. I do not have any basis points from previous years and have gone through all the steps given but can't seem to figure out why it's still being included in my income. Appreciate the help in advance!
Edit: I think I found the issue and wondering if there is a way to correct it. I did my conversion on 1/3/23 instead of doing it in 2022 (first year doing this, so this is my mistake as it seems you're supposed to do the conversion in the year you make the contribution). As such, this gave the IRA a value at the end 12/31/2022 which is being used in the form 8606 calculation which ends up making about half the $6,000 post-tax contribution that was distributed taxable. I'm not sure if there is anything to do here or if I just have to accept the losses, but if there's a way to not pay income tax on money I already paid income tax on, that would be great! Especially as it's the difference between paying additional taxes vs getting a refund.
