@sureshr wrote:
Hi Dana,
I am doing backdoor Roth for over 4 years and reporting through Turbo Tax. In 2020 it so happened that I contributed to Traditional IRA 6000$ in on Dec 24th 2020 and rolled all of it over to Roth IRA on Jan 1st 2021. When I am doing 2020 tax returns in Turbo Tax, I had a problem with 1099-R and a tax expert helped me to enter these amounts so that my federal tax due and state refund does not get effected. When I check FY 2020 Form 8606 column 14 "your total basis in traditional IRAs for 2020 and earlier years", it says 12000 instead of 24000.
I did backdoor Roth in 2021 again (all in October including Roth conversion). When I am doing tax return for 2021, I answered Yes to "Any Nondeductible Contributions to IRA". Then I tried to enter "Total basis as of December 31, 2020 as 24000" instead of 12000. Is this right?
If this is right and I proceed further it is asking me "Prepare an Explanation" since the basis is changed from 2020 to 2021. Also the California Refund bumped due to the value basis I entered, which I am not supposed to receive I guess. Please suggest what to do.
Thanks in advance.
Look at the last filed 8606 and enter the line 14 amount whatever it is.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
