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Retirement tax questions
Hi @dmertz ,
I'm finishing up my taxes based on this conversation and am seeing some unexpected results, so I wanted to follow up with you one last time about if what I'm seeing seems correct. I've entered all the data, but weirdly on my 2020 8606 form, the taxable amount on line 18 is showing up as $51. I'd expect that to be $168 since the recharacterization amount into the traditional was $2,456 and the conversion back into the Roth was $2,624.
Here's what the Turbotax-generated 2020 8606 looks like:
Line 1 -> $6,000
Line 2 -> $2456 (this is as expected based on our conversation)
Line 3 -> $8456 (just adding 1+2)
Line 4 -> $0 (since the contributions were made in 2020, even though the were recharacterized in 2021, I think this is right)
Line 5 -> $8456 (just line 4- line 3)
Line 13 -> $2,573 (I'm confused by this number. Shouldn't it be $0? I also don't know where $2,573 comes from)
Line 14 -> $5,883 (also confused by this number, shouldn't it be $6000? Where'd the deduction come from?)
Line 15c -> $0
And then in Part 2:
Line 16 -> $2,624 (this seems right)
Line 17 -> $2,573 (how is this not $2456, my actual basis?)
Line 18 -> $51 (this should be $168 I believe)
I feel like something with how lines 1-5 are being generated (specifically line 4) is causing the resulting lines in part 2 to be slightly miscalculated, but I'm not sure what. I've gone through the IRA income and deduction sections multiple times and can't discern what I'm doing wrong. Any idea where Turbotax is generating those numbers from?