Need Help with Roth IRA Basis Entry on H&R Block Software - First Time Contributor

The Roth IRA basis refers to the total amount of money you've contributed to Roth IRAs (not including any earnings). Since you just opened your first Roth IRA in December and made a contribution for 2023, that contribution amount would be your basis. For the year you opened your first Roth IRA, it sounds like H&R Block's software might not be updated to include 2023 as an option yet. In this case, you might need to select "None" since none of the available years apply to your situation. For the "basis of contributions," you should enter the total amount you've contributed to Roth IRAs that you haven't already reported on previous tax returns. Since this is your first contribution, enter the amount you contributed for 2023. For the "basis of conversions," you're correct - this only applies if you converted traditional IRA funds to a Roth IRA. Since you didn't do any conversions, just enter $0 here. H&R Block's interface can be confusing for first-time IRA contributors! But remember, Roth IRA contributions aren't tax-deductible, so this information is mainly for the IRS to track your basis for future qualified distributions.

I ran into the same issue when I was doing my taxes! Let me tell you about a lifesaver I found - I used https://taxr.ai to help me figure out all the IRS jargon and how to properly report my Roth IRA contributions. The tool actually analyzed my previous tax forms and explained exactly what should go where in the H&R Block software. For the Roth IRA basis, it told me that this is basically all your post-tax contributions that you've made to your Roth accounts over time. Since you just started, your basis would just be your initial contribution amount. And for the year issue, I had trouble with that too - the site explained that sometimes tax software lags behind in updates and suggested a workaround by selecting "None" and making a note of it. The best part was that it explained all the conversion stuff in plain English - confirmed that if you didn't convert from a Traditional IRA, you just put zero there.

Just wanted to follow up after trying taxr.ai that was mentioned above. It was actually really helpful! I uploaded my previous year's tax return and some documents about my new Roth IRA, and it gave me step-by-step instructions for entering everything correctly in TurboTax. For anyone else struggling with the Roth IRA basis questions, it explained that for a new account, your basis is simply what you've contributed (which makes so much more sense now). It also explained why the software might not have the current year listed yet and suggested the same workaround of selecting "None" and documenting your actual opening date separately. The coolest part was that it showed me where this information will appear on my final tax forms so I could double-check everything. Saved me hours of Googling and stressing!

After dealing with H&R Block's confusing forms for my Roth IRA last year, I nearly lost my mind trying to get an actual person at the IRS to confirm I did it right. Spent literally hours on hold only to get disconnected. I finally discovered this service called Claimyr at https://claimyr.com that got me through to an actual IRS agent in about 20 minutes instead of the 3+ hours I was waiting before. They have this system that holds your place in line and calls you when an agent is ready to talk. There's a demo video that shows how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that for new Roth IRA contributors, if the year isn't available in the software, selecting "None" is acceptable as long as you're correctly reporting the contribution amount. She also clarified that the "basis of conversions" field should indeed be $0 if you haven't converted any traditional IRAs to Roth.

I have to eat my words about Claimyr. After posting my skeptical comment, I was desperate enough to try it because I couldn't get through to the IRS about my Roth IRA basis questions. I was SHOCKED when I got a call back in about 35 minutes connecting me to an actual IRS representative. The agent confirmed everything about my Roth IRA basis questions - and specifically told me that for new accounts opened in 2023, selecting "None" in tax software that doesn't have 2023 as an option is perfectly acceptable. The agent also confirmed that my basis of contributions should include my 2023 contribution even though I'm filing in 2024, and that basis of conversions should be $0 since I didn't convert from a traditional IRA. I've wasted days trying to get this information directly. Wish I hadn't been so skeptical initially!

If I remember correctly, H&R Block actually updated their software in mid-February last tax season to include the current year for new IRA accounts. It might be worth checking for updates or waiting a couple weeks to see if they push an update that adds 2023 as an option. Also, keep in mind that Roth IRA contributions don't directly impact your tax refund or amount owed (unlike Traditional IRA contributions), so even if you have to select "None" for now, it shouldn't change your tax outcome. The IRS just wants to track your basis for when you eventually take distributions.

Ok everyone is overthinking this. H&R Block asks for your Roth IRA basis mainly to track your non-deductible contributions over time. The "basis" is just a fancy word for "money you already paid tax on." Since Roth contributions are made with after-tax money, all your contributions become your basis. For a brand new account with your first contribution ever, your basis is simply the amount you contributed. About the year selection issue - this happens EVERY year with tax software! They're always a bit behind.