I cannot wrap my head around this discrepancy and appreciate it if someone can clarify it for me please. This is not an Intuit product question.
Worksheet 1-1 within Pub 590-B, line 2 says to enter all contributions made to traditional IRA, whether or not deductible.
However, just below Worksheet 1-1
Form 8606 line 1, says to enter only the nondeductible contributions made to traditional IRA.
This discrepancy between "all vs nondeductible" potentially impacts the multiplier (line 7 of Worksheet 1-1 or line 10 of 8606) which results in different taxable portion of the distribution. What am I misunderstanding?
P.S. I recognize that the taxes are done using form 8606; I just want to clear up my confusion. Thank you
