Hi,
Request quick help please.
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 11000 instead of 22500.
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.
FY 2017:
I contributed $5500 after tax money to Traditional IRA and did back door Roth to Roth IRA.
Form 8606: Box 14: This is your total basis in traditional IRAs for 2017 and earlier years -- $5500
FY 2018:
I contributed $5500 after tax money to Traditional IRA and did back door Roth to Roth IRA.
Form 8606: Box 14: This is your total basis in traditional IRAs for 2018 and earlier years -- $11000
FY 2019:
I contributed $5500 after tax money to Traditional IRA and did back door Roth to Roth IRA.
Form 8606: Box 14: This is your total basis in traditional IRAs for 2019 and earlier years -- $16500
FY 2020:
I contributed $6000 after tax money to Traditional IRA in Dec 2020 and did back door Roth to Roth IRA in Jan 2021. Since the 1099-R balance still showing $6000 and for some reasons that I forgot turbo tax expert helped me to answer back door Roth questions.
Form 8606:
Box 1: 6000. Box 2: 16500. Box 3: 22500. Box 5: 22500 Box 13: 11000
Box 14: This is your total basis in traditional IRAs for 2020 and earlier years -- $11000
My total non deductible IRA contributions are $22500 not Box 14 $11000 from previous year 8606. This is the issue.
Thanks in advance.
