Form 8606 IRA Basis

I am using free online version. I have used downloaded versions in past. I am trying to figure out where this IRS 8606 form is getting the IRA basis from what I have told it in Form 1040. I have 1099-Rs that show these were not taxable and were rolled into a traditional IRA. I have one small recharacterization of credit card rewards from a traditional to a Roth IRA, and that apparently is prompting this form to generate? Where does it get these dollar amounts to determine a total basis for 2024 and prior years?

856

Expert Alumni

Feb 28, 2025 4:59:58 AM

Line 1 of Form 8606 come from entering nondeductible traditional IRA contributions. Line 2 is when "Yes" to the "Any nondeductible Contributions to your IRA?" in the traditional IRA contribution interview or at the end of the retirement interview.

To clarify, did you have a recharacterization (entered in the IRA contribution interview) or conversion (entered in the retirement interview)? Please see What's the difference between a conversion and a recharacterization? for additional information.

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Form 8606 IRA Basis