DanaB27
Expert Alumni

Get your taxes done using TurboTax

1) No, you do not need to amend your 2020 tax return for Form 1099-R with code R.  A Form 1099-R with code R will do nothing to your return. You can only report it as mentioned above. Your 2020 Form 8606 should have a $6,000 basis on line 14. The gains are treated as earned in the traditional IRA and are not part of the basis.

 

2) Yes, you will enter your $6,000 nondeductible traditional IRA contribution for 2021 on your 2021 tax return with the steps above. You will enter your $6,000 basis from your 2020 Form 8606 line 14 when TurboTax asks for prior nondeductible contributions.

 

3)You will enter your Form 1099-R (code2) as shown with the distribution of $13,975 with the steps above.

 

@jctaxfile

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