When I input my 1099R as one entry covering both the Roth Conversion and the cash distribution, TT automatically generates a 8606-T filling in the Conversion amount correctly in the 8606 Part II and leaving Part I blank. This IRA passed to me from my husband in 2020 and he ran out of “Basis” on an 8606 in 2015 or 2016 thus no 8606s after that year; no basis left in it.
When I divide the 1099R into two entries, the exact same thing happens. I carefully examined the IRA Worksheet and all my entries show up properly except that $25,000 does not show as taxable at the bottom of the worksheet. At the top of the worksheet It is lumped into all my IRA distributions/conversion transferring from all boxes 1and 2a but at the bottom of my worksheet for this particular section, it leaves it out of the taxable amount. Same on Line 4b.
THREE HOURS LATER.....After reviewing, printing and reviewing hard copies of all the worksheets, Form 1099-R Summary, etc. I discovered that my other small IRA (all my own contributions deducted on our joint returns each year thus NO BASIS) is also not listed on Line 4b. The 2020 distribution Boxes 1 and 2a was just under $1,000, it has always been in my name, my first RMD was in 2019, the 1099R Box 7 is a 7 but if I remove the checkmark ✅ in the box for IRA/SEP/SIMPLE on the TT entry, the federal refund also goes down. What is happening?
