Thank you for the response @Critter-3,
For the first time in ~15 years I paid a tax company to do them for me. I probably should have done it myself but time and I'm not a pro 🙂
A little history on my Backdoor Roth contributions and when they were converted
| Date | Amount | Date of conversion to Roth IRA |
| 07/08/2020 | $6,000.00 | 07/10/2020 |
| 05/17/2021 | $6,000.00 | 06/23/2021 |
| 12/20/2021 | $6,000.00 | 12/22/2021 |
| 12/27/2022 | $6,500.00 | 01/06/2023 |
| 03/01/2024 | $6,500.00 | 04/05/2024 |
| 03/01/2024 | $7,000.00 | 04/05/2024 |
If I look at my taxes from last year (2022) and I look at form 8606 here are the values for what I see in there
| Box | Value | Description |
| 01 | 6,000 | Enter your nondeductible contributions to traditional IRAs for 2022, including those made for 2022 from January 1, 2023, through April 18, 2023. See instructions |
| 02 | 0 | Enter your total basis in traditional IRAs. See instructions |
| 03 | 6,000 | Add lines 1 and 2 |
| 10 | X | Divide line 5 by line 9. Enter the result as a decimal rounded to at least 3 places. If the result is 1.000 or more, enter "1.000" |
| 14 | 6,000 | Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2022 and earlier years |
Does this seem like its fill out correct for last year or should I see a total of $18,000 somewhere, which would be the total cost basis for the Backdoor conversions. One of the parts that confuses me is 8606-Box 2, since my traditional IRA account is 0 after a conversion would this value increment each year if I keep contributing?
I think one of the pieces I was missing for this year is that I didn't put $6,500 into the "Let's Find Your IRA Basis" page. This says "Total Basis as of December 31, 2022", I had $6,500 in there on 12/27/2022 which was converted on 01/06/2023. After adding this in there it brought my tax bill back down so I was being double taxed on those funds.
To respond to your answer for 2, that makes sense on getting taxed for the $3 and it looks like that's what TurboTax auto entered for my 2023 taxes. The odd thing is that when I put the funds in there it was in the money market so I didnt think it would fluctuate at all but it gained $2.54 for some odd reason. I intend to keep doing this for as long as its allowed so hopefully that wont happen to me again.
I think I have two questions coming out of this
1. What do you think about what I mentioned above and what was filled last year. Is this correct? If not do I need to get a hold of the people I had do my taxes last year?
2. Should I be seeing a cumulative total basis for these backdoor Roth conversions every year on my taxes? Meaning this year I should see the number $24,500 ($6,000 + $6,000 + $6,000 + $6,500) somewhere for my total backdoor Roth conversions over the years and next year I would see the total of $38,000?
Thank you very much for the help!
-haryy
