☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 4, 2025 8:47:37 AM

Form 8606 issues

I need assistance filling out my 8606 forms for the past 2 years, I am mostly getting confused on the earnings in my recharacterization and if they are included in the form. I appreciate any help at all! The pesky line 1 on form 8606 is what is giving me issues on both 2023 and 2024 taxes.
 
2023 taxes (figuring out if I need to amend this)
  • Contributed $3,000 to a roth IRA, got married in december 2023 and was no longer eligible.
  • January 2024 opened a new traditional IRA and recharacterized the roth amount which transferred at $3,480
  • This was nondeductible and done before I filed my taxes.
  • Form 8606
    • Line 1: Should it be $3,000 or $3,480?
2024 taxes
  • Accidently had that autopayment on for the roth and $250 got contributed to the roth IRA account in January 2024
  • February 2024: recharacterized it to the traditional and a total of $258 was transferred
    • Received a 1099R form with code N for $258
  • In addition I made $2,750 nondeductible contributions to the traditional IRA
  • I then converted the entirety of the traditional to the roth which was
    • 1099R, code 2 for $6598.70, taxable amount not determined and IRA boxes checked
  • Form 8606
    • Line 1: Should it be $3,000 or $3,008?
    • Line 2: Answer will be based on 2023 tax scenario
    • Line 3: Line 1 +2
    • Line 4: 0
    • Line 5:  Same as line 3
    • Line 6: $0
    • Line 7:  $0
    • Line 8: $6598.70
    • Line 9: $6598.70
    • Line 10: TBD on line 3
  • I should be able to figure out the following lines, as long as I figure out line 1 from 2023. I would appreciate any help at all! I seem to be getting different answers everywhere!
I just want to make sure i'm going about this correctly!!

0 1 1556
1 Replies
Expert Alumni
Mar 4, 2025 10:24:05 AM

For 2023 Line 1 should be $3,000 (the original Roth IRA contribution amount that was recharacterized without earnings). The earnings are deemed to have been earned in the traditional IRA since you recharacterized the contribution.

 

For 2024 Line 1 should be $3,000 ($250 original Roth IRA contribution that was recharacterized without earnings plus $2,750 direct traditional IRA contribution).

Line 2 should be $3,000.