Yes, you need to report the tax on your return. Turbo Tax online doesn't have a feature for adding the tax that is generated on form 8621. If you buy TurboTax desktop, you can add the tax to a form and it'll be recorded correctly in the return. You have one of two options.
- Prepare the return online and then prepare to print and mail the return. Send in the return with Form 8621 attached, and let the IRS handle the rest. With the mailed return, you can send a message saying that TurboTax doesn't support Form 8621 and that the tax isn't reported on the return.
- You could prepare the return using the software, which you would need to purchase up front. Once you have the software installed, you can go to:
- To the Forms mode in your return.
- Go to 1040/1040 SR WKS
- Go to Schedule 2 Part 2 Line 17Q Here is where you will report the taxes that were generated on Form 8621. Here you will combine the totals from both 8621's.
Option would be the best option because the tax is reported in your return. You will still need to print and mail your return to include Forms 8621 but at least the taxes will be reported correctly on the tax return.
If you decide to use the software, you can purchase the download here. You can transfer the tax file from your online account into your turbo tax software so you can continue working on the return.
To save your tax file to your computer, you would go to
- Tax tools
- Tools
- Save your 2024 return to your computer.
- Be sure you know which location this file is saved in. Usually it is saved in your downloads.
Once your software download has been installed, you will be able to transfer the .taxfile from the online account to your software.
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