Form 8606

[rsc68]

Both my Federal and State tax returns have been filed and accepted.

It has now come to my attention that Form 8606 has an error. Line 6 of the form was left blank. It should have contained the value of my traditional IRA at the close of December 31, 2022. This information was accessible to Intuit turbotax so I don't understand why it wasn't properly entered on the form.

The Form 8606 error means that Form 1040-SR line 4b is incorrect. Consequently, the adjusted gross income is incorrect.

Since the Federal tax return has errors and since the State tax return requires a copy of the Federal return, the State return is also incorrect.

How is this conundrum to be fixed?

[Critter-3]

See this TurboTax support FAQ for amending a tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

[fanfare]

"This information was accessible to Intuit turbotax so I don't understand why it wasn't properly entered on the form."

@rsc68 

How's that?

It can't know the value unless you enter it based on your own records.

perhaps you went down the wrong path entering 1099-R so Turbotax did not ask for that value.

[rsc68]

@fanfare 

You were correct in your assessment. I failed to enter the value of my traditional IRA as of December 31, 2022. I have now used Turbotax to do an amended return based on correctly entering the requested data from Form 1099-R. This has resulted in a change to my adjusted gross income, as expected, but Form 8606 was not updated to reflect the correct traditional IRA value. Is there a way, using Turbotax, to get Form 8606 updated?

[fanfare]

wow!

the way is to amend and enter the value.

by  not correct I assume you mean Line 6 is still zero.

you don't need line 6 if you are not using Part I, or you skipped Line 4 and went to Line 14.

In that case the total value is used to calculate a penalty, if any.

---

You should not file the amendment electronically if Form 8606 is not correct.

did you save your revised return, and exit TurboTax and then look again.?

sometimes "Print" function does not keep up with your changes, another TurboTax "feature".

Otherwise, contact Customer Support .

reply with an image of form 8606 with your name and ssn blacked out, so we can see it.

[rsc68]

@fanfare 

Thanks for your response.

Yes, I did save the revised return, exit Turbotax, and then look again. All of the lines on Form 8606 Part I are blank. On the original return, Form 8606 Part I has entries on all of the relevant lines except for line 6 (due to my mistake of not providing it).

I have not filed the revised return.

Is it possible for me to use email in communicating with customer support?

[fanfare]

what is the activity you are reporting.?

what is the distribution code in Box 7?

@rsc68 

[rsc68]

@fanfare

The activity being reported is the traditional IRA gross distribution.

The Distribution Code in Box 7 is 7.

[fanfare]

if you have a prior years basis, Line 3, then Line 6 is required to calculate the correct taxable amount,

if you don't meet any of the three bullet items for Part I you don't use Part I (it will be empty).

For code 7 you don't use Part II or Part III either in which case you don't even file Form 8606.

@rsc68 

[rsc68]

@fanfare

Thank you for your assistance. It is very much appreciated.

Regarding the as-filed version of my return, Form 8606 contains the following:

Line 1 is blank, as it should be, since I made no nondeductible contributions in 2022.

Line 2 correctly shows the total basis in my traditional IRA.

Line 3 correctly shows the total of lines 1 and 2.

Line 4 is blank, as it should be.

Line 5 correctly shows the correct amount of line 4 subtracted from line 3.

Line 6 is blank because, as you correctly pointed out, I neglected to follow the correct path when inputting data into Turbotax.

Line 7 is 0. This is incorrect; again, possibly due to me not inputting data correctly. This line should contain the amount of the 2022 traditional IRA distribution that was not a conversion to a Roth IRA. (The traditional IRA distribution amount on Form 1099-R is comprised of a distribution to my cash-management account and a conversion from my traditional IRA to my Roth IRA.)

Line 8 shows the entire traditional IRA distribution. This, of course, is incorrect because line 7 is incorrect.

Lines 10 through 18 are, of course, incorrect because of the errors in the previous lines.

Is it possible that this situation can be rectified through Turbotax?

[fanfare]

let's not rehash the old Form 8606.

you did an amend but you were not happy with the resulting Form 8606.

now need the same breakdown for the newly revised Form 8606  !

@rsc68 

[rsc68]

@fanfare

The following pertains to Form 8606 in the the revised version of my return:

Part I

None of the lines have entries. This is obviously not correct as lines 2, 6,7 and 8 should should have entries in order for the calculations in the ensuing lines to be carried out. On the as-filed return, line 2 had the correct amount. It was available from the 2021 Form 8606.

The required line 6 amount is available from Traditional IRA Form 5498.

The required line 7 amount is available from Roth IRA Form 5498.

The required line 8 amount is available from From 1099-R. 

Part II:

Line 16 contains the entire amount of the traditional IRA distribution. This is not correct as it should only contain the amount of the distribution that was converted to the Roth IRA.

Line 17 is zero. It should contain the amount from Part I, line 11, but since Part I was not completed the zero entry is erroneous.

Line 18 is the same as line 16.

Part III is blank, as it should be.

I granted access to Turbotax for all of my tax information from my financial institution as part of the process but I'm now wondering if something is missing. Is there a listing, accessible by me, in my Turbotax account for the tax documents obtained by Turbotax?

[fanfare · Accepted solution]

Form 5498 doesn't help you at all because it is just informational.

you have to enter all required data in the 1099-R interview.

Contact TurboTax support and have them walk you through the process and then you (and they) can figure out what is happening.

Note: a lot of people complain that the AMEND process doesn't work or if you try to CANCEL the amendment, TurboTax gets confused.

unfortunately your return was closer to correct before you started to amend.

If you can get back to that state, that would be a good time to contact Customer Support.

that means you cancel the AMEND and delete all 1099-Rs and try again.

Note: often deleting all 1099-Rs and reentering them solves a lot of problems.

[DanaB27 · Accepted solution]

Please be aware that TurboTax sometimes uses the Taxable IRA Distribution Worksheet to calculate the nontaxable distribution on line 13 of Form 8606 (indicated by *). In this case, lines 6 - 8 will be blank.

It seems when amended the return you deleted your prior year basis since line 2 on Form 8606 is empty. You can enter it with the steps below (see steps 6 and 7):

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Continue through the questions
5. On the "Review your 1099-R info" screen click "Continue"
6. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2021 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

@rsc68 

[rsc68]

@fanfare 

Your advice gave me the impetus to go back through the Form 1099-R interview process. That proved to be the solution. The return is now completely correct including everything on Form 8606.

Your assistance made this possible. 

Thank you!