@dmertz @nolanwittrock
I am starting to change my opinion on this. I just tried the same situation for a 2019 disaster with the 8915-D form (that is almost identical to the 8915-E) and the 8606 is used the same way.
Now I am not sure that the 2019 was correct either because the MAGI IRA deduction worksheet is the same as the taxable income, not the 2019 AGI that includes 1/3 of the 2019 distribution.
i.e. the line 1 income = 100000
line 4b = 39000 (1/3 of the distribution)
line 8b = 153154 (AGI)
But the ira deduction worksheet shows the MAGI = 100000
That seems wrong also.
Because the MAGI without 1/3 of the distribution is below the threshold, the IRA deductions was allowed, but if the actual AGI was used, as I believe it should be, it would be denied.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
