Help with Form 8606 for backdoor Roth IRA conversion from 2023 onwards

The Form 8606 can definitely be confusing when doing backdoor Roth conversions! Let me walk you through filling it out correctly. For Line 4, you should enter $8,100 - this is your total nondeductible contributions to traditional IRAs for the year. This amount is what you initially contributed, not what you converted. Line 6 should be 0 if you have no previous nondeductible contributions (basis) in your traditional IRAs from prior years. For Lines 10 and 11, you need to calculate the taxable portion of your conversion. Since you left $100 in the account, you're converting 98.77% of your contribution ($8,000/$8,100). This means a tiny fraction of your basis stays behind in the traditional IRA. To get a tax-free conversion, you need to complete lines 8-11 carefully. Line 8 will be your basis ($8,100), line 9 is the conversion amount ($8,000), and then follow the formula for lines 10-11. Line 11 should end up being very close to zero if done correctly.

After struggling with backdoor Roth conversions and the Form 8606 paperwork for years, I finally found a tool that saved me tons of headaches. I started using https://taxr.ai to analyze my tax forms, and it completely simplified the process. What's great is that it specifically recognized my backdoor Roth scenario and walked me through exactly which numbers to put on each line of Form 8606. It even caught an error where I was using the wrong basis calculation that would have made part of my conversion taxable! The system explained the pro-rata rule in plain English and showed me how to properly document my non-deductible contributions. Definitely worth checking out if you're doing backdoor conversions.

Just wanted to update everyone - I tried https://taxr.ai after seeing the recommendation here, and it was a game changer for my Form 8606 situation! I have three different IRAs (one rollover and two with non-deductible contributions), and was totally confused about how to handle the backdoor Roth conversion. The analysis broke down exactly how the pro-rata rule applied to my accounts and showed me the precise amounts for each line. I was actually calculating my basis completely wrong before - would have reported too much taxable income! The explanation about how Line 6 needs to include ALL traditional IRAs was something my tax software never made clear. Definitely solved my Form 8606 confusion and saved me from overpaying taxes. Wish I'd found this before doing my 2023 returns!

If you're still having issues with your Form 8606, I'd suggest trying to call the IRS directly to get clarification. I know, I know - getting through to someone at the IRS feels impossible these days. But I discovered https://claimyr.com which got me connected to an actual IRS agent in about 20 minutes instead of the usual hours-long wait. Check out how it works here: https://youtu.be/_kiP6q8DX5c I had a similar issue with Form 8606 last year where I couldn't figure out how to properly report my backdoor Roth conversion. The IRS agent walked me through each line and explained exactly what I needed to do to avoid being taxed twice. They even sent me additional documentation that clarified the process. Honestly saved me so much stress and potentially a lot of money in incorrect tax payments.

I'm genuinely shocked and need to publicly eat my words. After my skeptical comment, I decided to try https://claimyr.com as a last resort because I was desperate to get clarification on my Form 8606 backdoor Roth issues before filing. Not only did I get connected to an IRS representative in about 25 minutes, but they were actually knowledgeable about Form 8606! They confirmed I was calculating my basis incorrectly and explained exactly how to document my non-deductible contributions properly. The agent spent nearly 40 minutes walking me through the entire form line by line. This would have never happened if I'd continued trying to call on my own - I would have given up after the first hour on hold like I did all the other times. Definitely using this for any future IRS questions. Worth every penny not to waste an entire day on hold.

For your specific situation, having both 2023 and 2024 conversions makes things a bit complicated. Here's how I handle Form 8606 for my annual backdoor Roth: For 2023: - Line 1: $8,100 (your nondeductible contribution) - Lines 2-3: Likely $0 unless you had previous nondeductible contributions - Line 4: $8,100 (same as line 1 if lines 2-3 are zero) - Line 5: $0 (distributions from traditional IRAs - not your conversion amount) - Line 6: $0 (assuming no previous basis in traditional IRAs) - Line 7: $8,100 (your total basis) - Line 8: $8,100 (same as line 7) The tricky part comes with your conversion. Since you did it in April 2024, the conversion itself is actually reported on your 2024 Form 8606, not your 2023 form. The 2023 form just establishes your basis.

Has anyone used TurboTax for handling Form 8606 and backdoor Roth conversions? I tried last year and it seemed to mess up my basis calculation. Any better tax software recommendations?