Hi Dave, I'm new at TT, have used Lacerte for the last 30+ years, so I hope this response gets to you. Federal Form 8606, Part I, Line 2 shows your basis in federal traditional IRA's. Now while this amount is only important when you take an IRA distribution, you do need to keep track of the basis because it can increase every year if you make non-deductible contributions to your traditional IRA. Way back when, CA had a max IRA deduction allowed of $1,500 while the fed had a max IRA deduction of $2,000. So many Californians have basis in their IRA's. So when you take distributions you will have part of the distribution be non-taxable; but the fed and CA non-taxable portions will be different. CA does not have a form that mimics the federal F8606, Lacerte just uses F8606 in the CA return and the label at the top of the form says "California Form 8606". So I need to find a place to input what the CA basis in the IRA is so that this amount carries forward every year until distributions begin, or find a place to adjust the federal IRA basis on the CA return.
