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Retirement tax questions
Since you made the conversion in 2023, you should have your 1099-R showing the $6100 distribution and taxes paid. The taxable amount needs to be changed to the $100. The tax paid will be part of your taxes paid on your return.
After entering the 1099-R,
-click “Continue” on the "Here's your 1099-R info" screen.
-Answer "Yes" to "Any nondeductible Contributions to your IRA?"
-Since you had nondeductible contributions in prior years, answer the questions about the
basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs. Your 2022 tax return should have a form 8606 showing the $6,000 nondeductible basis. The program will connect the dots to reduce the $6,100 to $100.
When entered correctly, only the $100 gain will show as taxable on Form 1040 4b.
[Edited 2/12/2024 |9:07am PST} @usrtax2023usr
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