Completing 8606 Form with a Loss

[Tee1224]

Hi! I am attempting to complete my 2024 taxes and am very confused on how to complete the 8606 form.

I completed my backdoor Roth for 2023 and 2024 in the 2024 year. I received my 1099-R from Fidelity showing that I have a total of $12998. After looking closer, the timeline is as follows:

March 2024: added $6500 to my IRA

March 2024: transferred $5998 to my Roth (due to losses from investments)

September 2024: added $7000 to my IRA

September 2024: transferred $7000 to my Roth

I did not realize that I had such a loss when I did the rollover in 2023, therefore when I did my taxes for 2023, I completed the form 8606 as the $6500.

I am confused on how to amend my 2023 taxes. I am even more confused on how to complete my split-year backdoor Roth without also having to amend it in the future.

I currently have: 1) $7000, 2) 5998, 3) 12998,  5) 12998, 10)x, 13) 12998, 14) 0, 15a) 0, 15c) 0

Does this seem correct?

[DanaB27]

You do not need to amend the 2023 tax return. You entered $6,500 correctly as nondeductible contribution and should have a 2023 Form 8606 with a $6,500 basis on line 14.

Your 2024 Form 8606 should have $7,000 on line 1, $6,500 on line 2, $13,500 on lines 3 and 5, and therefore you should have a on line a basis of $502 to carry over to future years.

[Tee1224]

Hi Dana! Thank you so much for replying. Do you know how it'll affect me filing out my returns for the following year? Does it just keep carrying over? 

[BrittanyS]

Yes the carryover can be carried forward to other years until you have used up the loss.

@Tee1224