Traditional IRA after tax contribution filliong out the form correctly

[redmarlen]

For 2024 I had balance in before tax Traditional IRA, added after tax money to it and converted some amount to Roth IRA. I estimated my tax due to balance being USD 1600, and turbotax extimated it the same after I input 1099-R info now.

This year I wanted to do the same - contribute USD7000 to Traditional IRA (after tax because of income) and convert it to Roth IRA (because I am not eligible to contribute to Roth IRA straight). So I started to do Traditional IRA contribution for 2025. I answered "No" to "Did Maryna recharacterize any of the Traditional IRA contributions for 2025 over to Roth IRA? This does not include conversions or rollovers". I answered "Yes" to "Did Maryna make any nondeductible IRA contributions to your Traditional IRA from 2024or prior years?". I answered 7000 to "If Maryna made any nondeductible contributions in prior years, look at Maryna's most recent Form 8606. Find the box called total basis and enter the number from that box below. If you never filed a Form 8606 just enter 0 (zero).

What was Maryna's total basis as of December 31, 2024?" After answering this question Turbotax increased my refund on those USD 1600, so I am doing mistake somewhere in these answers about my contribution for 2025. Please help

[ThomasM125]

The basis from previous years would be your non-deductible IRA contributions that are still sitting in a traditional IRA account at end of 2024. You may have made a wrong entry there.

[redmarlen]

Do you mean that I made mistake answering 7000 to "If Maryna made any nondeductible contributions in prior years, look at Maryna's most recent Form 8606. Find the box called total basis and enter the number from that box below. If you never filed a Form 8606 just enter 0 (zero).

What was Maryna's total basis as of December 31, 2024?" ?

I took that 7000 from form 8606 for 2024. It has just 4 fields filled in:

1) 7000

2) 0

3) 7000

4) 7000

I had balance in (before tax) traditional IRA of 46779 as of 21/31/2024. In 2024 I contributed to Traditional IRA 7000, which I converted to Roth IRA during preparing tax return for 2024 when I realised my contribution to Traditional IRA is after tax. Is my 8606 for 2024 incorrect? My non-deductuble IRA contributions as of 21/31/2024 was indeed 7000 as the rest of what was in Traditional IRA was deducted from taxes in the previous years

[RobertB4444]

No, because you had a basis in the traditional IRA your 8606 is correct for 2024.

[redmarlen]

Good, so where is the mistake, please? 8606 for 2024 is correct, after I am inputing 1099-R taxes of USD 1600 seems correct. Probably after 1099-R Turbotax asked me earlier if I wanted to track tax basis of my IRA for the future, I didn't anwer because I didn't know. Now it doesn't ask me any more this questions. How do I make turbotax to ask me this again?

It makes sense because it probably needs answer to those questions for my Traditional IRA after tax contribution for 2025, is that right?

[MarilynG1]

You probably do have Form 8606 in your return, after stating your 2024 basis, and adding a non-deductible contribution for 2025.  Save your tax file with forms and worksheets to a PDF to verify this.

Here's more info on How to Trigger Form 8606. 

@redmarlen 

[redmarlen]

Yes I do have form 8606 in 2024. In 2025 probably too. My question is how do I make Turbotax not to eliminate USD 1600 of taxes I owed due to making conversion from Traditional IRA to Roth IRA while having a balance in before tax Traditional IRA after i input my after tax traditional IRA contribution for 2025. How do I do it? Experts here confirmed 8606 for 2024 is correct, USD 1600 of taxes owed for conversion is correct, but how do I keep those taxes on my report after inputing info that I am making contribution to Traditional IRA for 2025 as well?

[AmyC]

Please see the other thread for an update from the group and how to truly get your return done. I recommend you leave feedback where the developers will see it and read it.

Once you file your return, as long as the settings to receive communication from Intuit don’t block it, you will see a pop-up message or receive an email with a survey asking you about your experience. We encourage you to leave your notes and comments there. “Voice of the Customer” notes and comments are read and acted upon. 

If you are using TurboTax Desktop, you can also leave feedback at the Final Steps tab.