Similar to last year Turbotax is generating incorrect form 8606.I am using premier online version. I entered 1099-R details, followed prompts and selected the non taxable options. The total basis is being incorrectly reported.This happened last year as well but I noticed this only this year.I've filed an amendment for last year but I want to make sure I file this year's form 8606 correctly.
I cannot access the form to edit and fix it. Just before filing I can view all the forms and I see the issue.How can I fix this? In the below image, line 13 should be 0 and total basis should be 18,000.
If you made a distribution or conversion from your traditional IRA then your basis will be used and reduce the amount of basis left in the traditional IRA.
Can you please provide more details about your situation?
Yes, a conversion will reduce the basis in your traditional IRA.
TurboTax is using Worksheet 1-1. Figuring the Taxable Part of Your IRA Distribution to calculate the nontaxable portion on line 13 (indicated by the * next to it). Therefore, lines 6 through 12 are empty.
Please check your return for the "Taxable IRA distribution Worksheet"
@DanaB27 Sorry, I did a backdoor Roth contribution not conversion.
A backdoor Roth is a conversion and will reduce your basis in the traditional IRA.
The nondeductible traditional IRA contribution increases your basis in the traditional IRA and then when you convert it to the Roth IRA (remove it from the traditional IRA) then the basis in your traditional IRA is reduced by this amount (assuming your traditional IRA is empty at the end of each year and you don't have any pre-tax funds or earnings).