@DanaB27
Hey Dana, this might be the exact issue giving me headache. See below:
“You mentioned that you recharacterized a 2020 contribution. I assume your wife had contributed to a Roth IRA for 2020 and then it was recharacterized as a traditional IRA and made nondeductible. Therefore, you would have a $2,000 basis from the prior year which you will have to enter when TurboTax asks (steps 6 and 7 below). You should be able to see your basis on the 2020 Form 8606 line 14.”
So yes, my wife lets say contributed $1000 to Roth in 2020 in error. However, at the end of the year 2020 her basis was exactly $0. Then in March 2021, we recharacterized this $1000 for 2020 back to traditional, then converted back to Roth in March 2021 as soon as it was able to. So having said this, and there was no basis at end of 2020, would the $1000 (now treated as nondeductible in traditional IRA) be truly a basis at end of 2020 or just part of our nondeductible contribution when we amend 2020?
Thank you
