how to enter ira basis in 2024

[mattin01]

How do I calculate and record the basis of my ira income for 23 taxes?  Last year Turbo calculated based on info I reported.

[DanaB27]

Can you clarify, are you talking about taking a Roth IRA distribution and entering your Roth basis?

If yes then please follow these steps:

1. Click on "Search" on the top and type “1099-R” 
2. Click on “Jump to 1099-R” and enter all your 1099-Rs
3. Click "Continue" on the "Review your 1099-R info" screen
4. Continue until you get the "Enter Prior Year Roth IRA Contributions" screen and enter your net contributions prior to 2023 

[mattin01]

Thank you.  This is a traditional IRA, part of which is taxable.  How do I calculate and report the non-taxable portion?

[DanaB27]

If you made nondeductible traditional IRA contributions in prior years, then you should have Form 8606 with a basis on line 14  from the prior year which you will enter during the interview when TurboTax asks, “Any Nondeductible Contributions to Your IRA?”. TurboTax will use Form 8606 to calculate the taxable part of the traditional IRA distribution.

To record the IRA distribution (Form 1099-R):

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
5. Click "I'll Type it Myself"
6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
7. Click "Continue" and enter the information from your 1099-R
8. On the "Your 1099-R Entries" screen click "continue"
9. Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had any nondeductible contributions in prior years.
10. Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

If you made a backdoor Roth conversion (made nondeductible traditional IRA contributions and then converted them to Roth) instead of a distribution then please see: How do I enter a backdoor Roth IRA conversion?

[knowbody]

I have a similar situation.  I followed your steps through the final step 10 but it never gives me the opportunity to insert that information.  I also tried going to the tax break section in Turbo Tax- traditional contributions.  It asks for my basis (which I have), but says it is different from what Turbo Tax calculated last year (which is odd because Turbo Tax never prepares a form 8606 for me as it is an inherited IRA).  It asks me to explain why it's different, which I do, then tells me that I don't qualify for the deduction.  What am I doing wrong?  Thank you

[DanaB27]

To clarify, did you make a traditional IRA contribution for 2024? If you have a retirement plan at work and are over the income limit the traditional IRA contribution will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible. This is what you want for the backdoor Roth. Please see How do I enter a backdoor Roth IRA conversion? for detailed instructions.

Please note, TurboTax can only handle your own Form 8606, not a Form 8606 for an inherited IRA.