DaveF1006
Employee Tax Expert

Retirement tax questions

The "missing" data on Lines 8-12 is usually not an error, but rather the software's way of following IRS Publication 590-B.

If your software uses the Taxable IRA Distribution Worksheet (based on Pub 590-B) to calculate your conversion, it often bypasses Lines 6 through 12 on the actual Form 8606.

 

Why it does this: If your basis (Line 5) is equal to or greater than the total amount converted, the math becomes a "short circuit." Instead of showing the work on the form, the software performs the calculation on a background worksheet and just "jumps" to the final result on Line 13.

 

The Asterisk (*): That little star next to Line 13 is the giveaway. It technically means: "Calculated using the IRS Publication 590-B worksheet instead of the lines above."

 

Even if those lines are blank, the form is valid and will be accepted by the IRS as long as the following is true:

 

Line 13 shows the correct non-taxable amount (usually your total contribution, e.g., $7,000).

Line 16 (in Part II) has the total amount you converted.

Line 18 (Taxable amount) is $0 (or just the amount of any interest/earnings).

 

If the three conditions are true, this 8606 is correct.

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