Thanks @dmertz , looking at that worksheet helps understand where the values are coming from. That said, I'm still unable to get the form/results to be right. Here's what the worksheet shows:
- Enter all contributions made to your traditional IRAs for 2020 -> $6,000
- Enter the basis in your traditional IRA(s) as of 12/31/2019 -> $2,456
- Add lines 1 and 2 -> $8,456
- Enter the value of all your tradition IRA(s) as of 12/31/2020 -> $0 (this value being set to $6,000 is what gave me the weird numbers I mentioned in my last comment, I now realize, since line 8 then comes out to .98052)
- Enter your distributions from traditional, SEP, and SIMPLE IRAs in 2020 -> $0
- Enter the net amount you converted from traditional to Roth IRAs in 2020 -> $2624
- Add lines 4, 5, and 6 -> $2624
- Divide line 3 by line 7. Enter as a decimal, do not enter more than 1.000 -> 1.000
- Nontaxable portion of the amount converted to Roth IRAs. Multiply line 6 by line 8 -> $2,624
- Nontaxable portion of the amount not converted to Roth IRAs. Multiply line 5 by line 8 -> $0
- Nontaxable portion of the distribution. Add lines 9 and 10 -> $2,624
- Taxable portion of the amount converted to Roth IRAs. Subtract line 9 from line 6. Enter the result here and on line 18 of form 8606 -> $0
So basically I see two outcomes from this form: either it saying I owe zero taxes on the conversion (which per our discussion is wrong), or it saying I owe $51 if I set line 4 to $6,000 (which is still wrong, but at least closer to the right value).
At this point I'm tempted to just move forward with entering $6,000 into line 4 (reflecting the $6,000 ROTH contributions that were recharacterized in 2021) and paying the $51 as Turbotax suggests.
