Thank you so much, @DanaB27 , for your reply!!
1. Yes, I can see the Form 8606 that TurboTax prepared for me!
2. and 3. Please bear with me... just to help me understand the meaning / purpose of Line 14 and 18... In this example:
a. Do you mean only $10 (Line 18) is taxed for my conversion in this 2024 Tax Return filing, and I am not double-taxed the whole $7000 amount?
b. So Line 14 Total Basis has no bearing in the 2024 Tax Return but it will be used in 2025 Tax Return?
3. Now I can see the Form 8606 TurboTax prepared, and I think I can see the problem better. My real situation is:
- 2024 April: Contributed after-tax $6500 to Traditional IRA for year 2023
- 2024 April: Contributed after-tax $7000 to Traditional IRA for year 2024
- 2024 April: Convert $13500 from Traditional IRA to Roth IRA
- 2024 Dec: Traditional IRA incurred $16 interest, and that's my remaining balance for Dec 31
On my auto generated Form 8606:
- Line 1 is empty
- Line 2 is 6500
- Line 6 is 16
- Line 8 is 13500
- Line 13 is 6492
- Line 14 is 8
- Line 18 is 7008
a. Seems like it doesn't know that I have contributed after-tax $7000. Why is that?
b. I have uploaded my 1099-R . Even though my whole 13500 is after-tax contribution, 1099-R shows 13500 in both Box 1 and 2a, and 2b have both boxes checked. Is that why? How can I tell TurboTax that that 13500 is actually after-tax, so they are not taxable contribution?
c. This is the first year I have this Traditional IRA account and performed a conversion to Roth IRA, how should I fill out those steps after uploading 1099-R so that I wouldn't be double-taxed the 13500?
Thanks you so much again for your help!!
