DanaB27
Expert Alumni

Get your taxes done using TurboTax

Yes, on your 2021 Form 8606 you will have a basis of $10,093 on line 3 (nondeductible contribution for 2021 and the basis of $4,093 from 2020 line 14 of 2020 Form 8606).

 

You will enter the 2021 Form 1099-R with $13,481 distribution on your 2021 tax return.  Since you have a basis of $10,093 and you converted the full amount of the traditional IRA (value is $0 on December 31, 2021) your distribution will have a nontaxable part of $10,093 (shown on line 13 of 2021 Form 8606) and a taxable part of $3,388 (shown on line 18 of 2021 From 8606). Your basis on line 14 will be $0.

 

 

Your 2020 Form 8606 should not have changed, do not enter anything on your 2020 tax return.

@goyal_raj 

 

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