ira information worksheet shows a conversion that was not even done

[PTN2021]

Hello,

 Thank you for your help. I prepare the returns for my son who has a Roth IRA that was started in 2022. When I entered the contribution for 2025, I just so happen to come upon the question about having TT track the basis of the Roth IRA. Curiously, I went the form section and pulled up the IRA information worksheet for all the years from 2024 to 2022.  Alarmingly,  I noticed the return from 2022 worksheets had a basis under the categories "Basis in Roth IRA Conversions" of $30,000  and " Conversion basis carryover as of 12/31/22 of $30,000.  

Then again on the 2023 returns it showed up again with "Conversion basis carryover as of 12/31/23 " of $30,000 and the " Basis in Roth IRA Conversion "  $30,000.  

He never did a Roth Conversion. The 2022 year was first the he ever contributed to any IRA.

For the 2024 and 2025, these Conversion amounts did not show up on the IRA information worksheet.

I am afraid that the IRS may think he did a conversion in 2022 or earlier and will be wrongly penalized because no tax was paid for these conversions. I was not aware of this  entry  of $30,000 on the worksheet until I looked into these worksheets. Will the IRS see the worksheet? How do I know if I mistakenly reported a conversion back in 2022 when such action was not carried out?

Do I need to amend the returns of 2022 and 2023 ?  I would not know what section to say he did not do a  Roth conversion of $30,000 ever. 

Please help .

[DaveF1006 · Accepted solution]

What you see on the IRA Information Worksheet isn’t sent to the IRS, and it doesn’t mean the IRS believes a conversion took place. TurboTax worksheets are for internal calculations only. The IRS won’t see them unless you mail them in, which you haven’t.

Let’s walk through this carefully so you can feel confident about what actually happened and what—if anything—you need to fix.

Why TurboTax Is Showing a $30,000 “Roth Conversion Basis”

1. TurboTax sometimes auto‑populates basis fields when:
2. A prior-year return was transferred into the next year’s software, and
3. Something in the interview triggered the program to assume there was a prior nondeductible IRA basis or a conversion basis.
4. This can happen even if no conversion ever occurred. 
5. It’s essentially a ghost entry—a leftover or misinterpreted data point that sits on the worksheet but does not flow to any IRS form unless a conversion or distribution is actually reported.

What the IRS Actually Receives

The IRS only sees:

• Form 1040
• Form 8606 (if required)
• Form 5498 (from the custodian, not from you)
• Form 1099‑R (if there was a distribution or conversion)

If your son did not receive a 1099‑R, and Did not file a Form 8606 reporting a conversion, then the IRS has no record of any Roth conversion. The internal worksheet is not transmitted electronically and is not part of the official return.

How to Check Whether a Conversion Was Ever Reported

Here’s how you can confirm with certainty:

1. Look at the 2022 and 2023 filed returns Check for:

1. Form 8606 
2. If Part II is filled out, that would indicate a Roth conversion.
3. If no Form 8606 exists, or only Part I is filled out for nondeductible contributions, then no conversion was reported.
4. Form 1040, line 4a/4b. If these lines are blank or show $0, no taxable IRA distribution or conversion was reported.

Do You Need to Amend 2022 or 2023? Most likely: No.

You only amend if:

1. A conversion was actually reported on the filed return, or 
2. The incorrect worksheet entry flowed onto Form 8606 or Form 1040.
3. If the $30,000 basis stayed only on the internal worksheet and did not affect any filed forms, then:

• There is nothing to correct. 
• The IRS has no idea the worksheet exists.
• No penalties or taxes are triggered.

Should You Fix the Worksheet Going Forward?

1. Yes, it’s a good idea to clean it up so TurboTax doesn’t keep carrying forward incorrect basis. You can:

• Open the IRA Information Worksheet in TurboTax,
• Delete the $30,000 conversion basis entry,
• Or re-answer the interview questions to reset the worksheet.

This will prevent future confusion.

Why It Disappeared in 2024 and 2025

That’s actually a good sign.

It means:

• TurboTax stopped carrying forward the incorrect basis,

• Or the interview answers changed and cleared the field.

Either way, it confirms the issue was internal to the software, not something the IRS acted on

[PTN2021]

Thank you so much for the detailed response. I checked all those boxes you recommended and  none of those forms showed up. Going forward I will need to check over each forms ( worksheets included) for erroneous inputs. It's a big relief to have read your post and explanations. Thank you