@69VanNuys wrote:
The trouble is that in my actual return, Turbo Tax is not following form 8606. It is following the Table 1-1. Turbo Tax does NOT go through the steps in 8606 and ends up with a different number on the taxable and non-taxable lines. TT is following the table. Form 8606, as I described in my photos above, subtracts from the amount contributed in 2021.
Yes - that is what we are discussing. TurboTax (and other software companies) are using the IRS worksheet because it is more favorable to the taxpayer and allows contributions *for* the tax yer but made after the tax year to be counted.
Note that that worksheet should be used if the reason for the non-deductible contribution is because of being covered by a retirement plan at work and the deduction is phased out or eliminated. It is not clear if that is what the IRS intended, but I have not heard of ANYONE being audited because of using that worksheet.
**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.**
