Form 8606
Form 8606 is a tax form you file with the IRS to report nondeductible contributions and conversions in an IRA. It is important for the backdoor Roth because it tracks which money has already been taxed so you are not taxed on it again.
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Words beside it
- 1099 form
This is a tax form that shows money you were paid for work when you were not a regular employee, such as delivery or freelance work. No tax is usually held back, so you report it and pay the tax yourself.
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