It depends. Based on the line numbers and numbers you've provided, you have a missing "Missing Basis" error.
The core of the problem is that Form 8606, Line 2 on your 2024 return is currently Zero. For a Backdoor Roth to work correctly across two years, Line 2 for 2024 must show the non-deductible basis you established in 2023.
Yes, you do need to amend your 2024 return. Here are the steps you need to take to rectify this error.
- Open your 2024 Return in TurboTax.
- Scroll down to the section titled "Your tax returns & documents."
- Select year 2024
- Click the link that says "Amend (change) return
- Once you begin amending, Navigate to Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R).
- Proceed through the screens after your 1099-R entry. Look for a screen that asks: "Any Nondeductible Contributions to your IRA?"
- Select Yes.
- On the next screen, it will ask for your "Total Basis as of December 31, 2023." Enter $6,490 (the amount from your 2023 Form 8606, Line 14).
- Once you do this, TurboTax will recalculate Form 8606. Line 15c should drop to $0 (or close to it, if there were small earnings), and your "Refund" meter should increase because you're getting back the tax you overpaid on that $6,490.
If you use the software, you need the 2024 version of TurboTax. Once you open the return, go to other tax situations>amend return. Then perform the same steps given above.
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