No, your $8,013 balance at the end of 2024 does not create taxable income. Since the contribution was non-deductible, and you did not take the deduction, the only thing missing is the informational 8606. You can go ahead and paper file that now. Without cause for filing Form 8606 late, there is a small penalty of $50. See: About Form 8606, Nondeductible IRAs to get a pdf form and fill it out.
You will record the $16,022 for years 2024 and 2025 both in 2025, since that is when the conversions took place. It is a nontaxable event, except for the returns of $22 you earned.
The first step is to enter your nondeductible contributions for 2025. You can find this in TurboTax under Deductions & Credits > Your tax break screen > Retirement and Investments > Start or Revisit next to Traditional IRA and Roth IRA. Here, enter the 2025 contribution of $8,000, but continue through the interview until you reach the question "Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?" Select yes and enter the cost basis of $8,000 from your 2024 contribution.
After you have entered the 2025 and 2024 nondeductible contributions, enter the conversions. Here are the steps:
- Go to Wages & Income.
- On the Your income screen, locate and select the Retirement Plans and Social Security section, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
- Answer Yes to Did you get a 1099-R in 2025?, then Continue until you are able to enter the 1099-R. Note, if you land on the screen Review your 1099-R info select Add Another 1099-R.
- Select how you want to enter your 1099-R (import or choose Change how I enter my form to either upload it or type it in yourself) and follow the instructions.
- Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
- Select I converted some or all of it to a Roth IRA and Continue.
- Next, choose Yes, all of this money was converted to a Roth IRA and Continue..
- Continue answering questions until you come to the screen Review your 1099-R info."
