Yes, that was what I was referring to in my instructions above that you need to enter your $6,000 nondeductible contribution for 2020 (basis) during the 2021 interview when TurboTax asks about your basis from 2020 and prior years. This $6,000 basis should on line 1, line 4 and line 14 of your 2020 Form 8606. If not, then you might have to amend your 2020 tax return to correct your Form 8606.
When you enter the $6,000 basis during the interview as the basis from 2020 and prior years then the basis will be entered on line 2 of your 2021 Form 8606 and TurboTax either uses lines 6-12 of Form 8606 or the IRS Worksheet 1-1. Figuring the Taxable Part of Your IRA Distribution to calculate the nontaxable part.
If you didn’t have any earnings and converted $6,000 then your conversion will not be taxable and line 4b of Form 1040 will show $0.
No, your 2021 Form 1099-R should not be reported on your 2020 return for a 2021 conversion. Your conversion happened in 2021 and therefore belongs on the 2021 tax return. Generally, the only 2021 Forms 1099-R that must go on the 2020 tax return are if they have code R or code P in box 7.
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