I'm perplexed by how Turbotax Desktop is reporting the basis in a Traditional IRA on Form 8606 despite a backdoor Roth conversion.
It's a standard backdoor Roth. We made a $7,000 non-deductible contribution and then rolled that into a Roth. Turbotax Desktop recognizes that the contribution was not deductible. We've entered the 1099-R from Fidelity reflecting the conversion, and Turbotax properly recognizes that the conversion was not taxable (because it's after-tax and already being taxed as income). .
*HOWEVER* my confusion comes with how TurboTax is handling the basis for the traditional IRA on Form 8606. It takes the $7,000 contribution amount on line 1 and adds it to the existing basis on line 2, for a new total that is $7,000 higher than it was before. That part seems right to me.
But Line 8 is *supposed* to have an entry for the "net amount you converted from traditional, traditional SEP, and traditional SIMPLE IRAs to Roth, ROTH SEP, or Roth Simple IRAs in 2024. If you click the box on Line 8, it just opens up the list of 1099-R forms. However, we've already entered the 1099-R reflecting the conversion, and I can't figure out what we would do with an additional 1099-R. I've tried an override on Line 8, and Turbotax doesn't do anything with that information (which is supposed to be carried through to Line 9 and Line 16). Am I missing something? I've searched the forums and haven't seen anything about this.
