Posted: 2/10/2026 12:50:35 PM EDT
[Last Edit: Morgan321][Edited]
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In early 2025 wife made a 2024 IRA contribution and immediately roth converted it. ie. the traditional contribution was done in 2025 but counted as a 2024 contribution. ie. traditional IRA contribution counts as 2024 but it and the conversion occured in 2025. Using the free turbo tax from fidelity and I can't figure out how to reflect this. The turbo tax help has steps to do it, but the steps do not reflect the way the software "flows". ETA2: I figured it out in case it helps anybody. I download my 2024 return from turbo tax and it has the 8606, however the forms turbotax gave me last year when I filed don't have the 8606 in them. I don't know why that is. The solution is to include the 1099 for the distribution, go to "IRA contributions" in the deductions section, make a traditional contribution and be careful about the answers - there is one that says "Did Amy make any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?". When you say "yes" then it will let you enter the $7k basis from the previous year's 8606. If you account for the $7k earlier by saying you contributed in 2025 you will never get to this point and turbo tax will make your distribution taxable. Turbo tax is confusing in that it "abstracts" everything and you have to finish your return to see the actual forms. It would be helpful if you could see the forms real-time because I know what to put where on the paper forms! |
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Originally Posted By Joe_Blacke: That is why I use the desktop version. You can not only see your forms but edit them. It didn’t used to be so bad but when they jazzed up the look of the screens they made it more of a blind box calculation. I hate it. I used to have home office and work expense write offs that I needed to be careful with. Retired now so I don’t have that complication. I used it a few more years but last year split, I did the Fed there on line but the state wouldn’t work right, my charitable contribution was raising my taxes instead of lowering them. Jackasses! This year I used someone else. |
The only hyphenated names I like are cartridge names......30-06, 30-40, 38-55 etc.
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I hate how Turbotax handles it. But Freetaxusa is also a bit confusing. I wrote myself a note that I keep with all my tax documents to remind me each year how to handle this in FreetaxUSA without freaking out. A non-deductible contribution to a traditional IRA, with subsequent Roth conversion is called the "Backdoor Roth" and I do this every year. Here are my notes for FreeTaxUSA: When you input the 1099-R it will appear taxable for the full amount contributed then converted, even though it should not be a taxable event. You will see the taxes owed increase, or the refund decrease by a significant amount just by entering in the 1099-R data. However, later in the process when asked if you contributed an IRA, you say "Yes" and input the amount, then it will consider this a non-taxable event, and handle the 8606. |
Wisdom acquisition is a moral duty --Charlie Munger
| I found it so complicated I had to go to H&R Block last year. I did a 2024 Roth Backdoor early in 2025 and then a 2025 right after. Was planning on doing my own taxed this year, but its still too hard for me to figure out. Backdoor roth this year along with moving 401k to IRA, TSP Roth money to Roth IRA, 401k Roth to Roth IRA etc... I'll pay again this year and next year will hopefully be easier with no more backdoor roths. |
Then conquer we must, when our cause it is just,
And this be our motto: 'In God is our trust.'
And the star-spangled banner in triumph shall wave
O'er the land of the free and the home of the brave!
And this be our motto: 'In God is our trust.'
And the star-spangled banner in triumph shall wave
O'er the land of the free and the home of the brave!