Will TurboTax then prompt me to enter the basis on line 1/14 of the 8606 form, after doing the recharacterization/earnings steps you detailed?
If I continue to use TurboTax, will it prompt me every year on entering this basis amount? What happens if say, in 2022, I don't make any 2022 contributions to the traditional IRA? Do I still need to enter the basis value every year when doing my taxes?
TurboTax will either automatically make the contribution non-deductible and create the 8606 if yiu are not eligible for a deduction or if it can be deducted, it will ask if you want the deduction or to make it non-deductible.
If you use TurboTax every year and transfer the prior years data then TurboTax will track your basis on the IRA Information worksheet. A new 8606 is only created it you make a new non-deductible contribution or take a distribution, otherwise the last filed 8606 remains in effect.
**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.**
