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@Opus 17  Wow! You have been so helpful with all of this!   Looking over 8606 Line 14 from previous forms, the values don't quite make sense.  In 2023 Line 14 was $3,600. In 2022 Line 14 was $2,400. In 2021 Line 14 was $12,000.   Again, I always file with Turbo Tax so it's interesting that something happened with the 2022 filing that the value wasn't carried over from 2021.    Thanks again @Opus 17 . I really appreciate your help and explanation!

@lchan wrote: @Opus 17 That is correct. I have filed with TurboTax for several years now and I do remember getting the message saying that my income was too high and I was not eligible for the deduction from the IRA contribution.    With regards to the 2023 return, yes, form 8606 is included (same with earlier years too). Form 8606 is used to keep track of contributions that are allowed, but not deducted.  Line 14 should be approximately the total of non-deductible contributions that you have made (contributions since joining your employer's plan).**   The impact of non-deductible contributions is that you did not take a tax deduction when you made the contribution, so you do not pay tax on that portion when you withdraw.   For example, if your IRA balance is $100,000 and you have a form 8606 documenting that you have $40,000 of non-deductible contributions, and you make a withdrawal, that would mean that since 40% of the account represents contributions you already paid tax on, then 40% of the withdrawal is tax-free and only the other 60% is taxable.    To claim this adjustment, you need to keep the most recent form 8606 for use when filling out any tax return that has an IRA withdrawal, conversion or rollover.  That return will generate an updated 8606, that you keep until the next time you have a withdrawal or contribution.  That means you need to keep your 2023 form 8606 until you retire and start withdrawing.  This is an exception to the general rule that you should keep tax papers for 3 or 6 years.     Assuming your non-deductible contributions were properly reported, then you have done everything right and have nothing to fix and nothing to worry about.  Just save that form 8606 until you retire, or until the next time you contribute, withdraw, convert or rollover your IRA.   **If form 8606 line 14 does not have all your non-deductible contributions going back to 2011, I would probably ignore it and move on.  The IRS can only audit you for 6 years, so as long as you reported your non-deductible contributions on form 8606 from 2019 onward, I would forget about any errors or omissions from 2018 and earlier.  

@Opus 17 That is correct. I have filed with TurboTax for several years now and I do remember getting the message saying that my income was too high and I was not eligible for the deduction from the IRA contribution.    With regards to the 2023 return, yes, form 8606 is included (same with earlier years too).

@user17600343099    Yes.   Business is a completely separate program from the personal Home & Business version.  Business is only a Desktop program for Windows.   Although for 2024 they have  online versions for Business.  Those are not the same as the DIY  Desktop program.  The Online Business is $739 for Live Assisted Business and $1,749 for Live Full Service Business. Live Assisted Business https://turbotax.intuit.com/personal-taxes/online/live/business-taxes Live Full Service Business https://turbotax.intuit.com/personal-taxes/online/live/full-service/business-taxes The Desktop installed DIY Business program is $190 and is only available for Windows. https://turbotax.intuit.com/small-business-taxes/cd-download   Does that answer your question?  I wasn't sure what your question was.  

Please explain the "rollover."  An inherited IRA can be rolled over to another inherited IRA.  It can never be rolled over or combined into an account in the person's name unless the person is the deceased person's spouse.     In other words,  if the IRA is owned by "Jane Smith as heir to John Doe" it can be rolled over into another IRA owned by  "Jane Smith as heir to John Doe", but it can never be rolled over into an IRA owned by Jane Doe alone.   Can you please explain?

@lchan wrote: @Opus 17 That is correct, for all years we had an income greater than what was eligible to claim the deduction.  We file Married Filing Jointly.     I did some more digging and realized that for several years the total contribution made between my employer's retirement account and the IRA was less than the federal limit for that year.  But between years 2016 and 2022, the total contribution between the two was higher than the limit for each year. The amount over varies year to year, but they are all over the limit. I think you are still confused about the contribution limits.  You are always allowed to contribute up to the maximum to a traditional IRA ($5000, $6000, or $7000 for the years we are talking about.), even if you contribute to a workplace plan.  The limits do not combine.   For example, in 2025, the total limit for contributions to a workplace plan like a 401(k) is $23,500 for the employee salary deferral, and $70,000 from employer plus employee.  Even if you and your employer max out the 401k, you can still contribute up to $7000 to a traditional IRA.   The problem is that you took tax deductions that were not allowed.  The contributions themselves are fine.   However, if you used software for any of these years, the software should have prevented you from taking a tax deduction based on your income.  Do you know if you actually took the tax deduction for all years 2011-2023?  If you made the contribution but did not take the deduction, you would have a form 8606 with your tax return.  If your last IRA contribution was in 2023, does your 2023 tax return include a form 8606?  

Thanks for your reply. I tried it both ways (breaking out all 50+ states and territories and just breaking out CA and the territories and lumping all the rest together).  Neither worked. TT gave an error saying the amounts don’t match, even though the total matched to the penny. I think there is a bug in TT. It may be a matching error in decimal places  past the second decimal place (pennies). I erased all entries and tried again from the start with same result.  In the end, I added a penny to the CA entry and it worked, even though the extra penny meant that the numbers were actually off by a penny. It doesn’t really make sense to me.  I did the state by state breakout in a spreadsheet using the total number provided on the 1099-DIV and multiplying that by the percentage figures given in a table in the back pages of the same 1099.  

@Opus 17 That is correct, for all years we had an income greater than what was eligible to claim the deduction.  We file Married Filing Jointly.     I did some more digging and realized that for several years the total contribution made between my employer's retirement account and the IRA was less than the federal limit for that year.  But between years 2016 and 2022, the total contribution between the two was higher than the limit for each year. The amount over varies year to year, but they are all over the limit.

This is for a IRA?  Well first of all the 1099R should be on 1040 line 4 not 5.  The 1099R should have a X checkmark in the little IRA box next to box 7.  So go back and check that box.  Delete the 1099R forms and enter them again.  That usually fixes it.  If you answered the RMD questions wrong it might have given you a penalty on 1040 line 23.  

Thanks - I was able to get to the draft 1040-SR.    Do the right amounts  show up on 1040 lines 4a and 4b?    4a and 4b show 0 (that seems to be the error as he got $17k as the RMD).   5a shows the amount rolled over and 5b shows the $17k distribution amount.  How much is the tax due on 1040 line 37?   Maybe a IRA question was answered wrong and they owe a early withdrawal penalty or an excess accumulation penalty. Tax due is $4k as stated above. 

Yes—both H&R Block and Tax Act still indicate Windows 10 is supported for their desktop software, which you’d use to file 2025 taxes (in early 2026). H&R Block (desktop/CD/download): System requirements list "Windows 10 or higher." Tax Act (desktop/download): System requirements say "Windows 10 or 11." Both consumer and pro pages indicate Windows 10 support. Why doesn’t TurboTax address the claim that it is doing this to force customers into more expensive software and services? There is credible evidence from regulators and reporting that Intuit has a history of steering customers toward paid options and is shifting other products toward cloud and subscription models. The FTC issued a final opinion in January 2024 finding that Intuit engaged in deceptive "free" advertising, prohibiting future claims unless eligibility is clearly disclosed. This reflects past practices that pushed consumers from "free" into paid TurboTax products. Multiple state attorneys general and FTC cases grew out of reporting that Intuit used design and marketing to nudge users into paid tiers, such as Pro Publica investigations and a 2022 multi-state settlement. Intuit is also sun-setting QuickBooks Desktop and moving users to QuickBooks Online, a clearer shift to recurring, higher-revenue subscription models, suggesting a broader corporate preference for more expensive cloud-based products.

It is not illegal to contribute to an IRA if you also participate in a qualified workplace retirement plan.  You might not be eligible for a tax deduction, but you can still contribute.  You just have to make certain adjustments for the nondeductible amounts.   A "return of excess" is a special procedure that can only be done up to October 15 of the year after the ineligible contributions.  If your last potentially ineligible contribution was in 2023, it is too late to even think about the "return of excess" procedure as a way to fix this.   Are you sure you were never eligible for the deduction?  In 2011, the deduction phase-out started at $56,000 for single and $90,000 for married filing jointly.  Did you make more than that, even 14 years ago?   The 2023 deduction phase-out started at $73,000 for single and $116,00 for married filing jointly.   Are you sure that you have been over the deduction limits ever since 2011?   Let's start by clarifying that, then we can see what we think next. 

Are you using the Online version?  And it says the Tax Due is $4,000+?   Before filing you can preview the 1040 or print the whole return. You have to pay any fees first before you can see all the forms, etc. https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

Thank you! Based on your answer, it seems that IRS will have to trust me that this was a total loss of my investment. I wonder, in case of an IRS audit, what would be an acceptable proof that the investment was a total loss. All I have is an email from the syndicator saying that the bank foreclosed on the property...  

Did they get two 1099R forms?  Yes What codes are in box 7 on them?  The one for the rollover amount (not taxed) is 4G, The code on the form for the taxable distribution is 4.  Do the right amounts  show up on 1040 lines 4a and 4b?    I can't seem to get to the screen that shows me the draft 1040 - any tips?  How much is the tax due on 1040 line 37?   Maybe a IRA question was answered wrong and they owe a early withdrawal penalty or an excess accumulation penalty. I can't seem to get to the screen that shows me the draft 1040 - any tips?  If the tax return is right I would ignore the strange rate, etc.  I don't want to pay $4000+ on taxable income of $1100 until I understand how this could be right, ie what is causing it.