Hello,
I am doing my 2022 taxes and have a question regarding my 2022 back door Roth conversion. My 2022 contribution and conversion occurred in calendar 2022 ($7,000). When going through the Turbo Tax prompts, Turbo Tax auto-populates the question regarding the basis of my 2021 Traditional IRA as $0. This makes sense because per my returns below, my 2021 return had $0 populated on Line 14 Form 8606.
However, if I look at my Form 8606 from my 2020 tax return Form 8606 had line 14 populated with $7,000.
Is this because the 2020 contribution and conversion was made in calendar 2021, whereas the 2021 contribution and conversion occurred in calendar 2021? Therefore, since the 2020 conversion didn’t happen until 2021, there was basis in 2020? And then because the 2021 (and 2020) conversion occurred in 2021, there was no basis for traditional IRA as of 2021?
Using this logic, should I assume that because I did my contribution and conversion for tax year 2022 in calendar 2022, when I do my 2023 taxes, turbo tax will pull over a basis of $0 for my 2022 traditional IRA.
To see the whole picture – let’s say I had contributed and converted my calendar 2022 Roth in January of 2023 – would Turbo Tax in that case pull over a 2022 basis of $7,000 because the conversion did not happen until 2023?
I am also answering the question “Yes, I made and tracked nondeductible contributions to my IRA”. I do not have any traditional IRAs.
Sorry if this is a duplicate post.
Original Transaction:
- March 2021 (all on same day)
- $7,000 contribution made to traditional IRA – tax year 2020
- $7,000 contribution made to traditional IRA – tax year 2021
- $7,000 conversion to Roth IRA – tax year 2020
- $7,000 conversion to Roth IRA – tax year 2021
2020 Tax Return:
- Form 1040
- Line 4 (a) $0/blank
- Line 4 (b) $0/blank
- Form 8606
- Line 1 $7,000
- Line 3 $7,000
- Line 14 $7,000
2021 Tax Return:
- Form 1040
- Line 4 (a) $14,000
- Line 4 (b) $0
- Form 8606
- Line 1 $7,000
- Line 2 $7,000
- Line 3 $14,000
- Line 5 $14,000
- Line 13 $14,000
- Line 16 $14,000
- Line 17 $14,000
- Line 18 $0
