So i made mistake, but wondering if there is way to claim refund
Here is the sequence
1. I opened IRA account for 2022 and funded 6000
2. as per my 2022 taxes, i am not allowed to claim deduction for this contribution
3. The day i converted my account from IRA to Roth IRA value was 6100. Bank deducted taxes and sent to IRS
my understanding
1. my 6000 were post taxes since i couldn't deduct IRA contribution
2. 100 was gain which should have been only taxed
question
1. how to claim refund for taxes on 6000?
Since you made the conversion in 2023, you should have your 1099-R showing the $6100 distribution and taxes paid. The taxable amount needs to be changed to the $100. The tax paid will be part of your taxes paid on your return.
After entering the 1099-R,
-click “Continue” on the "Here's your 1099-R info" screen.
-Answer "Yes" to "Any nondeductible Contributions to your IRA?"
-Since you had nondeductible contributions in prior years, answer the questions about the
basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs. Your 2022 tax return should have a form 8606 showing the $6,000 nondeductible basis. The program will connect the dots to reduce the $6,100 to $100.
When entered correctly, only the $100 gain will show as taxable on Form 1040 4b.
[Edited 2/12/2024 |9:07am PST} @usrtax2023usr
Thank you @AmyC for responding, it sounds simple , but follow up question
>>The taxable amount needs to be changed to the $100
How to make this change ?