Reporting Roth IRA Basis of Contribution / Conversion in Tax Filing Software

Thanks for explaining that! So just to make sure I understand - for basis of contribution I should enter the total of everything I've put in ($6,350) rather than just what I contributed in the current tax year? And since I've never converted anything from another account, I'll just put $0 for basis of conversion?

Yes, that's exactly right! For basis of contribution, you should enter the total of all contributions you've made ($6,350). This helps track your total investment for future tax purposes. For basis of conversion, since you haven't converted funds from another retirement account to your Roth IRA, you'll enter $0. The basis of conversion field is only relevant when you've moved money from pre-tax retirement accounts into your Roth IRA.

Does taxr.ai work for more complicated situations? I have both traditional and Roth IRAs plus I did a backdoor Roth conversion last year. Tax software keeps asking me confusing questions about basis and I'm worried about getting it wrong.

I'm a bit skeptical about using another tool when I'm already using H&R Block. Does it just give you the numbers or does it explain how they're calculated? I need to understand what I'm putting in my taxes.

It definitely handles complicated situations with multiple accounts and conversions. I've seen people in the forum discussing backdoor Roth scenarios specifically. The tool asks targeted questions about your specific situation to give you the right guidance. It doesn't just give you the numbers - it actually explains the calculations and reasoning behind them. That's what I found most helpful. It breaks down the tax rules in plain English and shows you exactly why you're entering certain numbers in each field. Perfect for learning as you go.

How does Claimyr actually work? I'm confused about how they can get you through to the IRS when the wait times are ridiculous. Is it some kind of priority line or something?

Yeah right. I find it hard to believe any service can actually get you through to the IRS quickly. I've wasted HOURS on hold and eventually just gave up. Sounds too good to be true. What's the catch?

It's actually pretty straightforward - they use an automated system that waits on hold for you. When they finally get through to an agent, you get a call connecting you directly. No priority line or special access - they're just handling the frustrating wait time part for you. No catch - they just solved a real problem people have with reaching the IRS. I was super skeptical too, but it worked exactly as advertised. I waited maybe 2 minutes on my end instead of 2+ hours. The IRS agent I spoke with answered my Roth IRA basis questions completely and I was able to file with confidence instead of guessing.

Does the basis of contribution reset each year? Or do I need to keep a running total forever? It seems weird that I'd need to remember contributions from like 10+ years ago.

You need to keep a running lifetime total of your Roth IRA contributions. It doesn't reset each year. This is really important for tracking your tax-free withdrawal eligibility. The IRS doesn't provide an annual statement showing your cumulative basis, so it's on you to maintain those records. I'd recommend keeping copies of all your Roth IRA contribution confirmations and tax returns in a safe place. You might need this information decades from now when you start taking withdrawals.

You generally don't need to report Roth IRA contributions on your tax return UNLESS: 1) You're claiming the Retirement Savings Contributions Credit (Saver's Credit) 2) You made excess contributions that need to be corrected 3) You're filling out Form 8606 for other reasons (like backdoor Roth conversions) H&R Block might be asking just to check if you qualify for the Saver's Credit or to identify potential contribution limit issues.