Backdoor conversion keeps showing taxable amount

[moozzyk]

I am preparing a married filing jointly return where I try to report two backdoor conversions. Mine (which I have been doing for years) looks correct. My wive's conversion, which should be simple (first time non-deductible contribution, no history, no contributions for previous year) causes issues. It keeps showing taxable amount in form 8606 regardless of what I do. What's even weirder, the taxable amount is half the contribution amount. 

Here is what I see on my wive's 8606:

1: Nondeductible contributions: 7000

2: Total basis: 0

3: 1+2: 7000

4: 2025 Contributions in 2026: Empty

5: 7000

6-12: Empty 

13: nontaxable portion: 3500

When I do the math manually line 13 should be 7000. 

Eventually this is used in 1040 and I see the following:

4a IRA distributions: 14000

4b Taxable amount 3500

Can someone take a look at this? The token number is: 1343902

[AnnetteB6 · Accepted solution]

Thank you for providing your diagnostic file.  The error is in the follow-up questions after all Form 1099-R have been entered.  As you go through these questions, you indicated that the total value for the Traditional IRA for the taxpayer as of December 31, 2025 was $1.  Then, when the same question comes up for the spouse, the answer is entered as $7000.  It should be $0 based on the scenario you outlined in your question.

[baldietax]

and if lines 6-12 are empty you probably have asterisks next to the amounts which indicates a separate worksheet is being used for the tax calculation which should show the conversion and MV amounts it is using... not sure what triggers that worksheet instead of using 8606 but you should be able to see it in the PDF with all forms and worksheets.

[moozzyk]

That was it! Thanks a lot for your help.

> and if lines 6-12 are empty you probably have asterisks...

This is good to know. I did see asterisks in form 8606 indeed and was wondering what they mean. Now I know.