@RT50 wrote:
I converted 8606 Non-deductible IRA to Roth IRA in 2020. In the IRA information worksheet, Part I, Traditional IRA Basis and Value, line 1 and 2 are correctly tracked by TurboTax. Line 3, Basis carryover as of 12/31/2020 is only about 44% of the amount of line 2, YE value on 12/31/2020. Shouldn't line 3 equals line 2, since no conversion or withdraw had been done previously. Taxes were paid for line 2 amount and should be the cost basis to calculate taxable amount (i.e. investment earnings) in the conversion. This caused the overstatement of IRA distribution taxable amount by 56%. Please help. Thanks.
Those calculations are done on the 8606 form. The carry-forward basis will be on the 8606 line 14.
**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.**
