taxable amount of roth conversion

[scottbfreeman]

Each of the past several years I have converted some of my traditional IRA to a Roth. Each year the taxed basis of the traditional IRA was reduced by a small amount and most of the conversion was taxable. This year TTax used all of the taxed basis in the conversion and this decreased my tax liability unexpectedly (ie messed up my tax planning). I'm wondering if there is some change in the tax code that caused TTax to use all my taxed basis in the conversion or might it be related to having reached the RMD stage of life? Any insights appreciated.

Scott

[DanaB27]

No, there weren't any changes. The taxable part of the conversion is calculated on Form 8606 (or on the Taxable IRA Distribution Worksheet if you have a * next to line 13).

[scottbfreeman]

Thanks for the reply. I compared the 8606 from 2023 when I had a conversion that was similar. It appears the difference relates to a zero entry on line 6 for this year. I don't recall that TTax asked for this number this year. It causes the multiplier on line 10 to be very different. Do I have to override the zero entry or did I not answer one of the questions correctly causing me to not get asked the value of the retirement accounts?

[scottbfreeman]

After wasting hours trying to understand why the taxed basis of my Trad IRA was missing I came across this post:

Some TurboTax customers may notice an issue when entering their IRA contributions. The question for Form 8606 isn't appearing. (https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-8606/unable-report-2023-8606-basis/...)
The question "Any nondeductible Contributions to your IRA?" does not appear in my version.

The Post indicates "We’re currently working to resolve this issue."

Comparison of Tax Prep software in Forbes may be viewed here - (https://www.forbes.com/advisor/taxes/tax-software/)