Cash App - How to report Roth conversion without Form 8086 & 1099-R? Need help!
So I messed up on my retirement contributions for 2024. I put $6500 into my Roth IRA through Cash App investing, and then realized my MAGI was way too high to qualify for direct Roth contributions. To fix this, I just did a recharacterization to Traditional IRA in February 2025, then immediately did a backdoor Roth conversion to avoid the penalty. But now I'm stuck on how to actually report this on Cash App! They seem to want a 1099-R form for the conversion, which I won't get until it's time to file my 2025 taxes next year. I've been looking through the Cash App interface and I'm completely lost. The reporting page doesn't seem to have any clear options for documenting this kind of conversion without the 1099-R form. Has anyone dealt with reporting Roth conversions through Cash App without Form 8086 and 1099-R? Am I missing something obvious in their interface? Getting a bit worried about doing this correctly.
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Annabel Kimball
You're in what's called a "recharacterization and conversion" situation, which is pretty common for folks whose income exceeds Roth IRA limits. The good news is you've already taken the right steps to correct the excess contribution! For reporting this on your 2024 taxes, you'll need to document both the initial contribution and the recharacterization. Since the actual Roth conversion happened in 2025, that part will be reported on next year's return. For Cash App specifically, you should look for an option to report a "recharacterization" rather than a conversion. It might be under account maintenance or corrections rather than with the standard contribution reporting. If you can't find it, contact Cash App support directly - they have specialists who handle these retirement account corrections. You'll need to file Form 8606 with your 2024 return to report the nondeductible Traditional IRA contribution (which is what your recharacterized contribution became). Then for 2025, you'll report the conversion using the 1099-R they'll provide next year.
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PaulineW
•Thanks for the detailed explanation! I looked everywhere but couldn't find anything labeled "recharacterization" in Cash App. Is Form 8606 something I file separately from my regular tax return or is it included when I file through tax software? Also, since I originally contributed directly to Roth, then recharacterized to Traditional, then converted back to Roth, does that mean I'll end up with zero tax impact for 2024 since the conversion is a 2025 event?
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Annabel Kimball
•Form 8606 is filed with your regular tax return - any decent tax software will include it when you enter information about nondeductible IRA contributions. It's specifically designed to track the non-deductible basis in your Traditional IRA, which is important for the backdoor Roth process. For 2024, you'll report the recharacterization which essentially means the direct Roth contribution never happened for tax purposes. Instead, you made a nondeductible Traditional IRA contribution. This typically has zero immediate tax impact if you have no other Traditional IRA assets with pre-tax money. Then in 2025, you'll report the conversion, but since you're converting funds that were already taxed (your nondeductible contribution), there should be minimal tax impact then as well, assuming minimal earnings between recharacterization and conversion.
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Chris Elmeda
After dealing with a similar situation last year, I found taxr.ai (https://taxr.ai) super helpful for navigating these complicated Roth conversion scenarios. I was also over the income limit and did a backdoor Roth through another platform, but couldn't figure out the reporting. I uploaded my Cash App statements to taxr.ai and it correctly identified my recharacterization situation and walked me through exactly which forms I needed and how to report everything correctly between tax years. It even generated a detailed explanation I could keep for my records in case of questions from the IRS. Their system specifically addresses these "in-between" situations where the documentation from financial platforms doesn't perfectly match what the IRS requires. Saved me tons of stress and probably a call with my accountant.
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Jean Claude
•How exactly does this work? Do you just upload your statements and it automatically tells you what to do? I'm in a similar situation but also have some old 401k rollovers mixed in with my Traditional IRA money which I think complicates things for backdoor Roth conversions.
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Charity Cohan
•I'm a bit skeptical - can it really handle the Cash App specific issues? Cash App's investment interface is notoriously limited compared to traditional brokerages. Did you have to do anything special to make it work with Cash App's documentation format?
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Chris Elmeda
•Yes, you just upload your documents and it analyzes them to identify tax situations. It's pretty straightforward - it extracted all the relevant dates and amounts from my statements and created a complete timeline of my transactions. For your situation with 401k rollovers mixed with Traditional IRA money, it actually specializes in these complex scenarios. It will calculate your pro-rata taxable amount for any conversion based on all your IRA balances, which is the tricky part most people get wrong with backdoor Roth conversions when they have existing pre-tax IRA funds. Regarding Cash App specifically, their system handled it without any issues. Cash App's statements contain all the necessary information even if their reporting interface is limited. The tool is designed to work with documentation from any financial institution, not just the mainstream brokerages. It extracted the dates, contribution types, and amounts correctly from my Cash App PDF statements.
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Jean Claude
Just wanted to follow up - I tried taxr.ai after seeing this recommendation and it was exactly what I needed! Uploaded my Cash App statements and it immediately recognized my recharacterization situation. The step-by-step guidance for reporting my backdoor Roth was super clear. It even pointed out that I needed to file Form 8606 for 2024 to establish my non-deductible basis even though the conversion happened in 2025. That detail would have completely slipped past me. The pro-rata calculation for my old 401k money was spot on too. Turns out I did have some tax liability on my conversion because of those pre-tax funds. Better to know now than get a surprise letter from the IRS later! Worth every penny for the peace of mind alone. Definitely keeping this for next year when I get that 1099-R and need to report the conversion part.
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Josef Tearle
If you need to contact the IRS about this situation (which you might since Cash App's reporting is limited), try Claimyr (https://claimyr.com). I was in reporting hell with a similar Roth conversion issue and needed clarification directly from the IRS on how to report without the proper forms. After waiting on hold for 2+ hours multiple times and getting disconnected, I found Claimyr and they got me connected to an IRS agent in under 20 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed I was handling my recharacterization correctly and gave me specific instructions for documentation I should keep with my tax records. Totally worth it for the direct confirmation from the IRS that I was doing everything right.
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Shelby Bauman
•How does this actually work? Do they just call the IRS for you? That sounds too good to be true considering how impossible it is to get through to them.
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Charity Cohan
•I'm extremely skeptical. The IRS phone system is deliberately designed to be a nightmare. How could any service possibly "skip the line" when millions of people are trying to get through? Sounds like a scam to get desperate people's money with false promises.
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Josef Tearle
•They don't call the IRS for you - they use technology to navigate the IRS phone system and wait on hold, then when they reach a human, they call you to connect with the agent. It's basically a sophisticated hold system that does the waiting for you. The reason it works is they have developed software that navigates all the IRS phone menus optimally and stays on the line through disconnects and transfers. When they reach a live agent, that's when they call you and bridge the connection. So you're still talking directly to the IRS, just without the hours of waiting and frustration. I was skeptical too, but it actually works. They don't promise instant connection - just that you don't have to be the one sitting on hold for hours. In my case it took about 18 minutes from when I submitted my request until I was talking to an actual IRS employee who helped clear up my Roth conversion questions.
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Charity Cohan
I have to admit I was wrong about Claimyr. After my last tax filing disaster with a missed 1099-R, I was desperate enough to try anything. I used their service yesterday and was connected to an IRS agent in about 15 minutes. The agent confirmed exactly how to handle my Cash App Roth recharacterization on both this year's and next year's returns. They explained I needed to attach a statement to my return explaining the recharacterization since Cash App's reporting isn't ideal for this situation. The IRS agent even emailed me a template for the statement I need to include! Would have never gotten that level of specific help through the standard channels. Definitely saving this service for next tax season when I'm dealing with the conversion reporting.
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Quinn Herbert
Don't overthink this - you're actually in a pretty standard situation that happens to lots of people who exceed Roth income limits. Here's the simplified version: 1) For 2024 tax year: File Form 8606 to report the $6500 as a non-deductible Traditional IRA contribution 2) Keep records of your recharacterization from Cash App 3) For 2025 tax year: Report the Roth conversion with the 1099-R you'll receive Cash App might not have great reporting tools, but this isn't their issue to solve - it's just how the tax law works with recharacterizations and conversions happening in different tax years. If Cash App is giving you trouble with documentation, download your account statements that show the transactions and keep them with your tax records.
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PaulineW
•Thanks for breaking it down! Do you know if I need to report the initial mistaken Roth contribution at all on my 2024 taxes? Or does the recharacterization basically erase that for tax purposes as if I just made a Traditional IRA contribution from the start?
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Quinn Herbert
•The recharacterization essentially erases the Roth contribution for tax purposes - it's treated as if you made a Traditional IRA contribution from the beginning. That's why you won't see any specific reporting of the "mistaken" Roth contribution on your tax forms. Just make sure you file Form 8606 to establish that the $6500 Traditional IRA contribution is non-deductible. This creates your "basis" which is important when you report the conversion next year, as it prevents you from being taxed twice on that money. The form is relatively simple but critically important for backdoor Roth strategies.
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Salim Nasir
Has anyone dealt with Cash App's customer service for tax questions? I called them about a similar issue and the rep seemed completely confused about Roth recharacterizations. Wondering if I should just switch to a more traditional brokerage for my retirement accounts.
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Hazel Garcia
•I switched from Cash App to Fidelity last year for my IRAs and it was night and day difference. Fidelity has specialized retirement account customer service that actually understands these transactions. Their online reporting tools for tax purposes are much more comprehensive too.
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Yara Elias
I went through almost the exact same situation last year with Cash App! The key thing to understand is that Cash App's interface isn't really designed for these complex retirement account corrections, so don't stress too much about finding the "perfect" reporting option within their system. Here's what worked for me: I downloaded all my account statements from Cash App that showed the original Roth contribution, the recharacterization to Traditional, and then the conversion back to Roth. These PDFs contain all the transaction details you need for tax reporting even if Cash App's built-in tools are lacking. For your 2024 taxes, you'll just need to file Form 8606 showing the $6500 non-deductible Traditional IRA contribution (which is what your recharacterized amount became). The actual conversion reporting happens next year when you get the 1099-R. One tip: when you do get that 1099-R next year, double-check that Cash App coded it correctly. Sometimes these newer platforms make mistakes with the distribution codes, especially for conversions that involved recharacterizations. Having your downloaded statements as backup documentation will be helpful if there are any discrepancies. You're handling this correctly - it's just that Cash App's user experience for these situations isn't great compared to traditional brokerages.
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Caleb Stone
•This is really helpful! I'm glad to hear someone else went through the same process with Cash App. Did you have any issues when you filed Form 8606 without having the official 1099-R yet? I'm worried the IRS might flag the discrepancy between what I'm reporting and what Cash App will eventually send them. Also, when you mention checking that Cash App coded the 1099-R correctly next year, what specific codes should I be looking for? I want to make sure I know what to expect so I can catch any mistakes early.
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