Backdoor Roth IRA - Wrong Box

[soljarag]

Hello,

I did a pretty standard Backdoor Roth.  I did a non-deductible IRA contribution of $7,000 in 2025.  Converted it to roth the next day. 

I thought I entered everything correctly into Turbotax, but if I look at the 8606 form,  Box1 is empty, Box2: 7000, Box3: 7000

shouldn't Box1 be $7000  and Box2 $0.0 ?

[baldietax · Accepted solution]

yes Line 1 should be 7000, Line 2 is the carryover basis from 2024

you should go back through the questions again to make sure you entered the 7000 contribution and identified it as non-deductible; there is a question whether you made non-deductible contributions for 2024 or prior and what the basis carryover is, you'll need to zero that out if you entered 7000 there previously.

here are the steps

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-...

[soljarag]

Thanks for the reply!  I think I got it corrected, but I have a couple of additional Questions.

Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?

Nondeductible contributions are tracked on Form 8606 in your prior year returns.

I selected YES

If you made any nondeductible contributions in prior years, look at your most recent Form 8606. Find the box called total basis and enter the number from that box below.

I looked at my last years taxes and on the 2024 Form 8606, Box 14 has 7,000

So I put $7,000 in the box.  

It still seems to not tax the $7,000, so I guess that's correct?

[baldietax]

yes if you had $7000 as the carryover from Line 14 on last year's 8606 that will carry forward to this year on Line 2 of 8606, added to whatever you contributed this year on Line 1.

But... why did you have a basis carryover, what is the situation with your IRA on 2024 filing... did you just make a non-deduction contribution in 2024 hence the $7000 basis that year?  But you didn't convert it to Roth?  Do you have an outstanding balance in your IRA as of 12/31/25?  Do you still have a $7000 basis carry over to 2026 on Line 14 of your 2025 8606?

If you put $7000 into the IRA in 2024 but didn't convert then I'd expect you to (hopefully) have some earnings in the IRA and if that's the case then these Roth conversions will be throwing out some tax as they would be partially taken from the earnings.

If you did a backdoor in 2024 with the Roth conversion and didn't have any balance coming into 2025 then you may not have filed it correctly hence the basis carryover (and maybe you paid tax you shouldn't), if so you may need to amend your 2024 return.

[soljarag]

I messed up my 2023 return ....  and I paid Turbotax for 'full service' for the 2024 return, and they said they fixed my mistake.  They said I just messed up how I entered my roth conversion in 2023.   I just looked at the original return they did for 2024 and Box 14 says $0  .......... but after they submitted that return, I noticed they messed up the return and should have done Itemized instead (that gave a bigger refund)    so they did an Amended Return, and in the Amended Return box 14 says $7,000   ... what a freaking mess ... guess I better contact support