@DaveF1006 I am also in the situation where I took an RMD from an inherited IRA that has nondeductible contributions. I'd really like to e-file. Everything I read says I should not paper file. I paper filed two years ago and the IRS didn't process my return until August. The IRS is supposed to be even more backlogged now.
What do you think about the following "workaround"? The 1099-R I got has a box 2a 'Taxable amount'. It has the same amount as box. What about if I just fill out the 8606 by hand like I'm supposed to, then just pretend the final result is what's in box 2a? Then when TT asks if the distribution had nondeductible contributions, say no.
I've run through the screens in TT both ways, and the result is equivalent, i.e. I owe the same amount both ways.
Or how about a second option, which is just to enter a line under 'Miscellaneous income' that's the negative number of line 13 from form 8606 "nontaxable portion of all your distributions". Then put in the note field a one-line version of 8606, such as: "$200 Nontaxable portion of RMD. $2000 basis remains for next year".
The IRS should be ok with this, right? I'm not trying to get away with anything, and I'd be doing them a favor by e-filing, instead of filing by paper.
