Incorrect Basis on IRA contributions

Forum|Forum|4 months ago
February 19, 2026
1 reply
6 views

Here is my timeline on IRA (post tax) contributions:

2022: contributed 725, basis 725

2023: contributed 1675, basis 2400

2024: contributed 2800, basis 5200

2025: contributed 3700, basis 8900.

TurboTax identifying a taxable amount of 2400.

When TurboTax asks my total basis at the end of 2024 I entered 5200.

Why am I getting 2400 as taxable and how can I fix it? Is it possible it’s only “seeing” 2024 and 2025 basis?

TurboTax Deluxe Online

dmertz

Level 15

Distributions are a proportionate mix of basis and pre-tax amounts. If less than your entire basis is being applied when determining the taxable amount, it implies that you did not have a zero balance in traditional IRAs at the end of 2025.

Knowing that the taxable amount is $2,400 says nothing about the amount of the distribution, the amount of the year-end balance, or the amount of basis being applied to the distribution. You can view the calculation of the taxable amounts on Form 8606 Part I and if TurboTax puts asterisks on lines 13 and 15, on the Taxable IRA Distribution Worksheet.

Alison13Author

Level 2

I did not have any distributions and the balance of the traditional IRA was $0 at the end of the year. I utilize the backdoor method and didn’t have any investment gains in the traditional IRA account. From my understanding, I shouldn’t have any taxable amount this year.

ThomasM125

Level 15

You did have a distribution if you did a backdoor IRA. You shouldn't have any taxable income from it this year.

The distribution would have been $3,700, the amount you rolled from the traditional IRA to the ROTH IRA. You would get a Form 1099-R reporting that. You would enter that in TurboTax and would enter $5,200 when asked for the basis in your IRA's, and enter $0 for the balance in IRA's at the end of the year. Also, you need to enter a non-deductible IRA contribution of $3,700.

If you did all of this, I suggest you delete the Form 1099-R entry and see if that removes the taxable income. If so, re-enter it. If you then have the same problem, delete the Form 1099-R entry again and also zero out the IRA contribution entry and start the process over. There must have been an errant entry somewhere, as I duplicated the process and did not have any trouble.

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