Deductions & credits

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@FTERoo wrote:

 

The change is a $400 impact, which I of course would like to avoid! That said, I want to do this correctly.

 

Your explanation lines up with what I would expect, but this version of TurboTax doesn't handle it clearly, nor do the HELP? explanations clarify proper treatment.

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If course it results in an impact  because without the year end value the entire non-deductible basis is applied and that is not correct.

Make sure that the IRA/SEP/SIMPLE box on your 1099-R is checked and that you checked it in TurboTax.  You will not get the questions if it is not checked.

When going through the 1099-R interview do not stop at the 1099-R summary screen (where you can add another 1099-R)  press Continue and keep going until you get the screens below:

I will add a couple of screen shots.....

OK - I have been testing this and I believe that you have uncovered a bug.   I cannot believe that it is just appearing now unless a recent update broke something,

When I got to the screen that asks to enter the Total Basis form 2018 or earlier and there is none, then the next screen to enter the 2019 year end value is skipped even though there is a 2019 basis on the 8606 form line 1 - that is not correct - the 2019 year end total value should always come up.

As a workaround I entered $1 of 2018 basis then then I got the next screen for the year end value, entered that and then press BACK (not continue) and remove the $1 (make the box blank).  Then when I continue, I do get the next screen where the year end value goes and press continue on that screen. 

After that the 8606 is correct.

@dmertz If you are around, can you confirm this?

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