I'm using the down loaded version and have been able to correctly characterize the contribution and conversion. However, I can't figure out how to get my cost basis on line 24 of form 8606, when I walk through the steps it changes other numbers in my 8606. Additionally, last year we had an account to our taxes, however he didn't put a cost basis for me but I have done conversions for the last five years. Do I just put in my correct number this year or do I need to file an additional form?
You can have TurboTax track your Roth basis in the IRA contribution interview:
You 2024 conversion is automatically be added to line 24 of Form 8606 when you enter the Roth conversion in TurboTax and took a nonqualified Roth IRA distribution.
Thanks @DanaB27!
I'm in the right section now but still missing something.
I enter my Roth contributions for 2024 as 0
Switch from a Roth to Traditional- No
Let us track your Roth Basis- Yes
Withdraw from Roth before 2024- No
Enter prior year Roth contributions - 0 (Note says do not include amounts converted from a traditional IRA)
Tell us the years- 2020,2021,2022, 2023
(Each year non taxable converisons full $6k amount, 0 for taxable)
Due to divorce- No
Excess Roth contributions- No
And nothing changes on line 24 in form 8606. I'm not seeing a ROTH IRA worksheet in my turbotax forms and I have one from 2023 in my return, so maybe I made an error else where?
THANK YOU SOOOO much @DanaB27!!!!
To clarify, did you take a Roth IRA distribution in 2024 and have Form 1099-R with code J? If not then Form 8606 part III isn't filled out.
If you had a nonqualified distribution, did you have net contributions on line 22 entered? If they cover the distribution amount then line 24 isn't filled out.
You should have the IRA Information worksheet that shows the Roth basis in part II and V.
Thanks so much @DanaB27!
Odd, no I did not take a distribution this year. I did not take a distribution last year and I have never taken a distribution from any retirement account (I'm in my 30's). I had an account do our taxes last year and I printed this years out to compare side by side to last years. Line 24 was filled with my husbands basis in our 2023 returns (he didn't take a distribution either) so I assumed it should be filled out for this years return as well. Seems like it was an error on our 2023 return?
Thank you for your responses! It really makes me confident using Turbo Tax!!!