1. Are you able to provide me a step by step guide based on my numbers? I've walked through it myself but I get confused based on the wording of the questions and I'm unsure if I've done it correctly. I have Turbo Tax Deluxe for Windows.
Just follow the standard steps for backdoor Roth in 2025, in 2 parts - enter the 1099-R for the full Roth conversion and following questions to identify it as a Roth conversion, you had 0.66 cents left as your MV as of 12/31/25 (Turbo may prompt you need Form 5498 but this is misleading, IRS instructions are to use year-end statements available in January); and enter the 2025 non-deductible contribution.
https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-...
2. When I went through it myself I was prompted that I might need to amend my 2024 taxes I submitted last year. It didn't provide any information on what I would need to amend. Based on the information I've provided did I make a mistake with my reporting last year on form 8606?
Which question prompted this... I am not seeing why you would need to amend your 2024 taxes if you included the Roth re-characterization in 2024 and ended with 2024 Form 8606 Line 14 = $7000. It may be referring to the basis if you had to amend that question for some reason (e.g. 2024 data wasn't carried over).
3. My understanding is I'll have to pay taxes on the gains I recharacterized (e.g. 10,277 - 7,000 = $3,277). Where does this get reported?
This will fall out from the tax calculation on Form 8606 and you should see this on Form 1040 Line 4b. You did a Roth conversion for $17,626 and had a $14,000 basis in the IRA so 14k will be tax-free and the rest will be taxable. The gains you re-characterized are included there.
4. During my recharacterization my $10,277 increased to $10,626 while in my traditional IRA. It was in the form of stock. Is this an issue, and how do I report it?
Same as #3 - this is included in the taxable difference between the MV you converted and your 14k basis in the IRA
5. How do I report the 66 cents in my traditional IRA? My plan is to perform another backdoor Roth IRA this year and just make sure my traditional IRA sits at $0 before December 31, 2026
Just respond to the question about your MV as of 12/31/25. Your 0.66 will be rounded up to $1 on Form 8606 Line 6 and may get left behind as $1 basis in your IRA carried over to 2026. When you clean it up $0 this year then that basis will get relieved. See also this article
https://www.whitecoatinvestor.com/pennies-and-the-backdoor-roth-ira/
Not a CPA but above is my understanding based on what you laid out - hope this helps.
