@laske wrote:
Thank you for your reply.
Regarding this part of the reply , "the 2019 contribution that you enter in the 1099-R interview comes form line 14 on the 2019 8606 form."
1. I did not see a way to add 2019 contributions during 1099-R interview but only for 2020. How do I get to that part?
2. Since I did not report wife's IRA contribution in 2019, it is not there in 8606 form (it has only 6000, instead of 12,000). Do I need to amend that form for 2019 first then?
Thanks again for your reply.
Yes you need to amend 2019 and add the contribution and mark ti non-deductible to generate the 2018 8606 form. You are not allowed to apply that to 2020 unless the 2019 8606 was filed.
When you enter your 2020 1099-R for the conversion:
You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2020.
That will produce a new 8606 form with the taxable amount calculated on lines 6-15 and the remaining carry-forward basis on line 14.
NOTE: If there is an * next to line 15 then 6-15 will be blank and the calculations will be on the "Taxable IRA Distributions worksheet instead.
**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.**
