@DrDeadPan wrote:
Understood - my point was I consider myself reasonably competent in understanding rules and using tools to file taxes but I work off of documentation that was supplied to me and I think most of the non-tax law inclined as well do the same. In this case, the 8606 popped up because I was issued a 1099-R. I was issued no such document for my 2018 contribution made in April of 2019 because the conversion occurred in May 2019. So, I am supposed to know that I need to file an 8606 so that I can use that for my 2019 returns? That's where I struggle in reconciling how useful the tool is.
The 2019 conversion has nothing to do with the 2018 contribution. Even though you had until the April 15, 2019 due date to make a 2018 contribution, it was still a 2018 contribution that has to be reported on your 2018 tax return whether it was a deductible or non-deductible contribution. Had you simply entered in into your 2018 tax return using TurboTax would indeed ask if you wanted to deduct it or make it non-deductible and automatically add the required 8606 for for you.
You failed to comply with the tax law that has ALWAYS required reporting Traditional IRA contribution on the tax return for the year the contribution was for - not the year made. That has been the law since 1975.
**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.**
