Adding form 8606 to previous year in TurboTax or mail in the form?

[Novahut]

Hi! 

For 2023, there was a non-deductible contribution to an IRA. However, the contribution amount was not entered in the 2023 tax returns on TurboTax, and therefore form 8606 was not generated (for 2023). 

I see posts saying that you can mail-in the form separately to the IRS. A representative from TurboTax suggested to use the tools on TurboTax to amend the 2023 tax returns (add IRA contribution, etc.). The idea was that doing the amending in TurboTax will make the system carry over the information (on form 8606) into 2024, and that will make doing the 2024 IRA contribution easier (since all the information is in TurboTax). However, since there will be no difference in the tax amount for 2023 (zero change in tax credit or debt), TurboTax is not proceeding with the amendment.

The questions:

1) is it possible to do the form for 2023 in TurboTax if there is no change in the tax amount?

2) is there really an advantage in doing it in TurboTax, compared to mailing the 8606 as a stand-alone form? 

3) if the form is mailed-in to the IRS, will the IRA calculations be difficult to do in2024 tax returns on TurboTax? 

Thank you!

[RachelW33]

As you mentioned, it is not necessary to file an Amended return as Form 8606 is a stand-alone form that can be mailed separately.  

You can enter your the amount from your Form 8606 line 14 into TurboTax so that it keeps track of your basis from year to year.  To do so, sign into your return, and search IRA basis using the magnifying glass in the upper right hand corner.  Next, click on the jump to IRA basis link.

Please see this TurboTax Help Article for more information: Where do I find Form 8606?