Where can I get my total basis in IRAs for 2024 and earlier years?
Check Form 8606, Line 14 of your 2024 tax return to find your total IRA basis from prior years. If your 2024 tax return doesn't include a Form 8606, look at the Form 8606 from your 2023 tax return to get the total IRA basis from prior years.
If you don't have a prior year Form 8606 or if it's incorrect, you can calculate your IRA basis from prior years by following these steps:
Example 2: You contributed $10,000 to your IRA in prior years and claimed a $6,000 deduction on a prior tax return for the $6,000 you contributed that year. You also took a distribution in a prior year where $3,000 of that distribution was offset by your basis, reducing the taxable amount of your distribution at that time. Your current basis is $1,000 ($10,000 - $6,000 - $3,000).
If you don't have a prior year Form 8606 or if it's incorrect, you can calculate your IRA basis from prior years by following these steps:
- Add up all the IRA contributions you've made over the years.
- Subtract any IRA deductions you've claimed on your tax returns throughout the years.
- Subtract any nontaxable distributions you've taken from your IRA.
Example 2: You contributed $10,000 to your IRA in prior years and claimed a $6,000 deduction on a prior tax return for the $6,000 you contributed that year. You also took a distribution in a prior year where $3,000 of that distribution was offset by your basis, reducing the taxable amount of your distribution at that time. Your current basis is $1,000 ($10,000 - $6,000 - $3,000).
