Hello, Thank you for your help. I prepare the returns for my son who has a Roth IRA that was started in 2022. When I entered the contribution for 2025, I just so happen to come upon the question ab...
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Hello, Thank you for your help. I prepare the returns for my son who has a Roth IRA that was started in 2022. When I entered the contribution for 2025, I just so happen to come upon the question about having TT track the basis of the Roth IRA. Curiously, I went the form section and pulled up the IRA information worksheet for all the years from 2024 to 2022. Alarmingly, I noticed the return from 2022 worksheets had a basis under the categories "Basis in Roth IRA Conversions" of $30,000 and " Conversion basis carryover as of 12/31/22 of $30,000. Then again on the 2023 returns it showed up again with "Conversion basis carryover as of 12/31/23 " of $30,000 and the " Basis in Roth IRA Conversion " $30,000. He never did a Roth Conversion. The 2022 year was first the he ever contributed to any IRA. For the 2024 and 2025, these Conversion amounts did not show up on the IRA information worksheet. I am afraid that the IRS may think he did a conversion in 2022 or earlier and will be wrongly penalized because no tax was paid for these conversions. I was not aware of this entry of $30,000 on the worksheet until I looked into these worksheets. Will the IRS see the worksheet? How do I know if I mistakenly reported a conversion back in 2022 when such action was not carried out? Do I need to amend the returns of 2022 and 2023 ? I would not know what section to say he did not do a Roth conversion of $30,000 ever. Please help .