If you have non-deductible IRA contribution (after tax and non-deductible), not entire IRA distribution is taxable and should be calculated based on the base non-deductible IRA of the prior year and the total IRA amount at the year end of the current year. Is form 8606 used to calculate the taxable IRA distribution? The non-deductible amount will then be decrease every year until it becomes 0. By then, all IRA distribution is taxable. Correct? However, I don’t see form 8606 for the past 3 years since I used Turbo. It did not ask the non-deductible IRA contribution amount during data entering until 2022 tax filing when I had Roth conversion. How does Turbo calculate the taxable IRA distribution, what worksheet is used, 8606?
