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Retirement tax questions
The Form 1099-Rs with code R can be ignored since they don't make any changes to your return. You can only report recharacterizations in the IRA contribution interview and you seemed to have done that on your 2021 tax return. You should have a $6,000 basis on line 13 of your and your wife's 2021 Form 8606. This basis will be entered on your 2022 tax return (and appears on line 2 of the 2022 Form 8606).
The earnings in the recharacterization are not taxable income in 2021.
If your traditional/SEP/SIMPLE IRAs were empty on December 31, 2022, then you should not have any taxable amount on line 4b since you converted less than the basis.
Please be aware, you had pre-tax funds in your traditional IRA now the pro-rata rule applies. This means that with each distribution/ conversion, you will have a taxable and nontaxable part.
Please review the instructions to enter your conversion:
- Click "Federal Taxes" on the top and select "Wages & Income"
- Click "I'll choose what to work on"
- Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
- Answer "Yes" to the question "Did You Have Any of These Types of Income?"
- Click "I'll Type it Myself"
- Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
- Click "Continue" and enter the information from your 1099-R
- Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
- Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
- Repeat for the other Form 1099-Rs and make sure you select who the Form belongs to.
- On the "Your 1099-R Entries" screen click "continue"
- Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had any nondeductible contributions in prior years.
- Answer the questions about the basis from line 14 of your 2021 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs
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