Your answer is very helpful, and somehow I still have several questions.
I used the standard deduction for 2018 and am doing the same in 2019.
I checked, and my 2018 return has no 8606 form, although I did use TurboTax to report the 2018 IRA contributions. I even remember going through that section with a Turbotax Live Help person. I think that I never indicated that I tracked non-deductible contributions when I did my 2018 return. If I try to for 2019, it says that if I never filed 8606 last year, I should just enter zero for the basis on Dec 31 2018. The result is it just says there is zero IRA deduction, which I would have expected. I take it this section should not affect my taxes owed, given that all contributions from all accounts have been removed?
When I look under the deductions and credits section, it has this:
Traditional and Roth IRA Contributions: 2018: $5,500.00 2019: $0
I know that the 2018 $5500 includes:
1) $4500 that was contributed to a Vanguard Roth IRA in early 2019, but as a 2018 contribution. All of that was removed as excess before 4/15/19.
2) The $1000 that was contributed to the Traditional IRA in Betterment, deposited in 2018 for the 2018 year. It was the same $1000 that was later recharacterized to a Roth in March 2019 and then removed before 4/15/19.
Is the fact that all $5500 was removed be the reason that Turbotax didn't generate an 8606? Or did I mess something up last year?
I also just went through the 2019 IRA contribution interview and included the $200 IRA contribution and then removal, and it lists the above $0 figure. So I'm not sure why the $5500 is listed for 2018 but the $200 isn't for 2019. All of it both years was removed.
Finally, I looked at my Vanguard 1099-R and I'm confused why it has code 8J and not PJ. I logged into my Vanguard account and confirmed that, while the money was put in the account in 2019, it clearly states that it was a 2018 year contribution. Is it a code 8 because the earnings were accrued in 2019?
Vanguard 1099-R only values are:
Box: value:
1 4,503.06
2a 3.06
4 0.00
7 8J
12 0.00
Sorry if this is too many questions in one thread or if it's getting too complex or has deviated too much from the topic. Just let me know if so. Thanks.
