In 2020 I converted all moneys in my Traditional IRAs to Roth's. Most of the money in the traditional IRAs was after-tax contributions. I made the 2020 contribution to the Traditional IRA, then did the conversion later in the year. Everything has been entered into TT correctly, the 1099 forms were imported and show the distribution with code 2. In the follow up questions I picked combination of rolling over, converting or cashing out, then entered the full amount as converted to a Roth.
However when I print out my forms for review, line 8 on Form 8606 is blank for the amount converted to Roth. Line 13 drops $1 from my basis which is reported correctly on line 5, then reports a $1 basis for 2020 on line 14. Lines 16-18 are completed, with Line 17 showing the basis-less-one dollar amount.
Is there a way to clean up this $1 discrepancy? And will the blank Line 8 cause any trouble with the IRS if lines 16-18 are completed?
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Did you enter your 2020 contribution in the IRA contribution interview so it is on line 1 on the 8606?
And if there is a * next to line 15 then the calculations are not on the 8606 but on the "Taxable IRA Distributions Worksheet" instead.
Yes, I did, the 2020 contribution is shown. And the asterisk and a note is there about the worksheet. I had 2 accounts that I converted, it looks like TT is rounding down both rather than adding first then rounding...?
Each 1099-R is rounded. Only the rounded results go to the 8606.
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