I have previous years' nondeductible IRA contributions that are tracked on Form 8606 annually by TurboTax. I reported this problem last year and heard back promptly from a TurboTax community "moderator." I hope that helpful system is still in place. Thank you.
if you have an inherited IRA with basis and a traditional IRA with basis and you took distributions from both, TurboTax can't handle it.
You should prepare the second 8606 for the inherited IRA manually, and you have to file on paper at the Post Office after overriding 1040 Line 4b.
Hi, thanks for quickly replying, but my situation is different from the one you state, and I know that TurboTax can fix it because they did last year. For some reason, though, it is happening again this year. `I should have made it clear in my previous message that I only have one Form 8606; it is for my Traditional IRA, and yes, that has basis because I made some nondeductible contributions. I do not need a Form 8606 for my inherited IRA because it did not have any nondeductible contributions, so it does not have basis. My RMDs for that IRA are fully taxable. The bug in TurboTax is that it is putting my inherited IRA RMD amount on line 7 of my Traditional IRA's Form 8606. I have used TurboTax for many, many years, and last year was the first time that this error occurred. I was just one of a number of TurboTax users to report this bug last year; fortunately, it was fixed in time for me to electronically file my taxes last year. Thanks very much for your continued assistance. I am grateful for your attention.
Hello again, I am embarrassed but at the same time glad to post that I've discovered that I made a data entry mistake, and the resulting Form 8606 error that I reported now seems to have been a kind of miscommunication between me and the TurboTax software. I know that sounds odd, but here's what I've seen/learned by looking back at TurboTax screens that I printed/saved this year as I was doing our tax return online. (Although documenting screens is labor intensive, it has been very helpful over the years, and this is a good example): I have a screen showing that I missed selecting the bullet that indicated my RMD was from my "inherited" IRA. However, the following two screens refer to "the original retirement plan owner" (when they were born and if they had taken any RMDs when alive). Surprising, right? This makes me feel a little better because it helps explain why I didn't immediately catch my mistake on the previous screen. Anyhow, I went back into the program, I clicked the bullet that says I inherited the IRA, and I completed the resulting screens for that 1099-R, and that solved my problem. Many thanks to all in the TurboTax community who kindly gave me their attention and assistance.