How to properly complete Form 8606 for Traditional IRA to Roth IRA conversions - backdoor Roth question

The Form 8606 output you're seeing is actually correct, even though it might seem counterintuitive! Here's what's happening: When you do a backdoor Roth conversion, Form 8606 treats this as two separate transactions: first, a non-deductible contribution to a Traditional IRA, and second, a distribution from the Traditional IRA that gets converted to a Roth. The blank line 8 is confusing many people, but it's because the form is focusing on the distribution aspect rather than explicitly calling it a "conversion." Your $17,300 conversion is actually being captured in line 13 as the nontaxable portion of your distribution. The $7 of interest that remained in your account is considered taxable, which is why line 14 shows it as your remaining basis. You'll need to pay income tax on that small amount of earnings. This is actually working as intended - the whole point of Form 8606 in your scenario is to track that you've already paid tax on the contributions, so they aren't taxed again when converted.

I went through this exact same confusion last year! I found this amazing tool called taxr.ai (https://taxr.ai) that really helped me understand what was happening with my Form 8606. I uploaded my statements and the tool immediately identified that what you're seeing is actually correct. The form doesn't show the conversion on line 8 because of how backdoor Roths are structured in the tax code. The software analyzes your specific situation and explains it in plain English. It saved me hours of research and worry about whether I was filing correctly.

I tried taxr.ai after seeing it mentioned here, and it was honestly a game-changer for my backdoor Roth situation. I had a much more complicated scenario with multiple years of conversions and some deductible contributions mixed in. The tool immediately identified that I had been calculating my basis incorrectly for years! It showed exactly where on Form 8606 my numbers should go and explained why my tax software was generating the form the way it was. I was able to fix my current year return and now understand how to track everything going forward. What I found most helpful was the step-by-step breakdown of the IRA conversion process and how it relates to each line on Form 8606. Definitely worth checking out if you're doing backdoor Roth conversions.

If you're still confused about your Form 8606 and need to talk to someone at the IRS for clarification, good luck getting through on the phone! I spent 3 hours on hold last week trying to ask a question about my IRA conversion. I finally tried Claimyr (https://claimyr.com) after a friend recommended it, and they got me connected to an IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. They basically hold your place in line and call you when an agent is available. The IRS agent confirmed exactly what the first commenter said - the blank line 8 is normal for backdoor Roth conversions the way tax software handles it. Saved me tons of stress wondering if I was doing something wrong.

I have to admit I was completely wrong about Claimyr. After ranting about it here, I decided to try it myself since I needed to ask about my own Form 8606 issues. I got connected to an IRS rep in about 30 minutes! The agent explained exactly why line 8 is blank on the form and walked me through the whole process. She confirmed that the way the form treats backdoor Roth conversions is confusing but correct. Saved me hours of hold time and the stress of wondering if my return was wrong. Never thought I'd say this, but being able to actually talk to the IRS directly solved everything.

The Form 8606 is one of the most confusing tax forms out there, especially for backdoor Roth conversions. Here's what I learned after doing these for several years: 1. The blank line 8 is normal - the form doesn't explicitly show the conversion amount there 2. The fact that line 13 shows $17,293 means that's the non-taxable portion of your conversion 3. The $7 difference is your taxable portion (the earnings) One tip: next time, convert the full amount INCLUDING any interest earned. That way you won't have a tiny amount left in the traditional IRA. Makes record-keeping cleaner.

Does anyone know if FreeTaxUSA handles backdoor Roth conversions better than TurboTax? I'm about to do my first conversion and trying to decide which software to use.

Just wanted to add my experience for anyone else dealing with this confusion. I did my first backdoor Roth conversion last year and had the exact same panic when I saw the blank line 8 on Form 8606! What helped me understand it was realizing that the IRS views this as a "nondeductible contribution followed by a distribution" rather than a direct "conversion." So the form is structured to track your basis (the after-tax money you put in) and separate it from any earnings. In your case, you contributed $17,300 of after-tax money, it earned $7.25, and then you distributed $17,300 of it to convert to Roth. The $7.25 that's still sitting in your traditional IRA will be fully taxable if/when you convert it later since it's all earnings. One thing to keep in mind for future years - if you plan to do backdoor Roth conversions regularly, try to convert quickly after making the contribution to minimize any earnings that build up. Makes the tax reporting much cleaner!