Yes, the $4.42 was not taxable on the 2022 return because the total amount converted to the Roth IRA was less than the Traditional IRA basis of $6000. After the conversion, your basis in the Traditional IRA was reduced by $5004.42.
So, when you report the 2023 Traditional IRA to Roth IRA conversion, you should have a taxable amount of $4.42 + $3.00 because your remaining basis in the Traditional IRA is $995.58 ($6000 - $5004.42).
@Nmotion
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