Your questions and answers are shown below:
- 2021 - Very important to file the 8606 now. Here are the instructions again:
- If you should have filed one with your return in 2022, but failed to do so, or did not complete it correctly, you can file Form 8606 as a stand alone form. It is a signature form and can be filed alone. This eliminates a need to amend the entire tax return.
- 2022 - Double check your Schedule 1 to be sure you did not take any deduction for an IRA on your return.
- The 8606, if my understanding is correct, should carry the nondeductible cost basis forward with no other entry. Yes, you should also send an 8606 for 2022. On the 2022 Form 8606 it should have shown the 2023 contribution on line 1, then the cost basis from 2021 on line 2. If this is not the case then you should mail a corrected form.
- 2023 - Yes. Once the 8606s are filed for 2021 and 2022, showing your basis of $6,000, then include a contribution on your 2023 return in the amount of $6,500 (assuming there was no deductible portion, the full rollover to a Roth should be tax free since it is all nondeductible contributions, meaning your cost basis.
@state-taxes
[Edited: 02/07/2024 | 9:59 AM PST]
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