Based on your question and the lines that you say are blank on Form 8606, it appears that the Form 1099-R that reported the distribution from the Traditional IRA (which was converted to the Roth IRA) has not been entered or was not entered correctly.
Go back through the 1099-R entries for your return to be sure that the correct ‘owner’ of each form has been reported. Also, be sure to complete all the follow-up questions in the Form 1099-R section until the program returns you back to the main income screen.
For your reference, see the information below for step-by-step instructions to enter a Back Door Roth contribution using TurboTax.
https://ttlc.intuit.com/replies/6590395
Based on your question and the lines that you say are blank on Form 8606, it appears that the Form 1099-R that reported the distribution from the Traditional IRA (which was converted to the Roth IRA) has not been entered or was not entered correctly.
Go back through the 1099-R entries for your return to be sure that the correct ‘owner’ of each form has been reported. Also, be sure to complete all the follow-up questions in the Form 1099-R section until the program returns you back to the main income screen.
For your reference, see the information below for step-by-step instructions to enter a Back Door Roth contribution using TurboTax.
https://ttlc.intuit.com/replies/6590395
I totally did all those steps (twice) and still lines 6-12 are blank. Similar thing happened last year when TT did not completely fill out form 8606 and the IRS sent me a letter saying I had to send a new 8606. No change in outcome, just a pain to have to deal with...
I agree there is an error in 8606, working on TurboTax 2019, line 6-12 do not fill out in form 8606. I’ve checked multiple times, as suggested by Intuit. No luck. This is frustrating.
There is likely nothing wrong with your entries.
Lines 6 through 12 are blank, indicated by asterisks next to lines 13 and 15 and a note at the bottom of Part I, because TurboTax is using Worksheet 1-1 of IRS Pub 590-B to calculate the taxable part of your IRA distribution:
https://www.irs.gov/pub/irs-pdf/p590b.pdf
If the IRS questions your Form 8606 you'll need to provide them with a copy of this worksheet by printing it separately from TurboTax. (Apparently some professional tax software automatically includes this worksheet with the filing when used, but as far as I know TurboTax does not.)
TurboTax, please assist. Form 8606 is not filled out correctly for Backdoor Roths. Also, if an individual is converting additional Traditional IRA funds to a Roth, this is populated correctly either.
If you could provide a diagnostic copy of your return then we can examine the situation in more detail.
Use these steps if you are using TurboTax Online:
If you are using a CD/downloaded version of TurboTax, use these steps:
I also have this problem. Can we just edit the 8606 manually to fill in lines 6-12 with the information from the worksheet? Will that information be submitted to the IRS?
It is definitely annoying when you print out your 8606 from various years to have blank spots on the form because it is in some worksheet when really that data should be included on the form.
@chimera1 wrote:
I also have this problem. Can we just edit the 8606 manually to fill in lines 6-12 with the information from the worksheet? Will that information be submitted to the IRS?
It is definitely annoying when you print out your 8606 from various years to have blank spots on the form because it is in some worksheet when really that data should be included on the form.
If lines 6-12 are blank then here should be a * next to line 15 which means that the calculations are done on the "Taxable IRA Distribution smart Worksheet" instead of the 8606 as shown in IRS Pub 590B Worksheet 1-1.
https://www.irs.gov/publications/p590b#en_US_2019_publink1000270091
Yes, my 8606 has the * next to line 15. I also found the worksheet where all of the calculations are done.
One of the previous posts said that the worksheet is not transmitted to the IRS so I'm wondering if there is any benefit of manually filling out lines 6-12 on the 8606 so that information is transmitted to the IRS?
The other benefit I can see is that when you go back and look/print out your 8606, the information is right there instead of having to look up a separate worksheet.
I do think TurboTax should fill out these lines even if they are using the worksheet so there wasn't so much confusion.
In some circumstances the worksheet calculations can be different than the 8606 which is the reason for having the worksheet. Particularly if there is a non-deductible contribution and distribution in the same year that can lead to a tax savings. Some professional software does send the worksheet to the IRS and yes, there is a chance that the IRS will question the missing calculations unless you mail the return with a copy of the worksheet attached or save the worksheet to send to the IRS should they send a letter in the future.
The IRS does NOT require that the worksheet be included and the IRS e-file system for do-it-yourself software is not currently programed to accept the worksheet.
And there is no way to manually fill out the missing lines unless you print and mail and fill it out on paper, but it might not be directly transferable from the worksheet to the 8606.
Ok, thanks for the info! I'll just keep the worksheet on file in case the IRS ever requests it.
taxact does the same thing, except they do not insert an asterisk/note like turbotax does, so i guess that's nice.
i switched from taxact for this very reason. however, i cannot access that worksheet. i already e-filed for 2020 and can only access the copy of the return i already downloaded. i see no way to access any kind of worksheet. (i got a CP2000 notice for 2016. i want to have the 2020 worksheet ready in case i get another notice.)
can someone from turbotax help me find that worksheet?
@myfriend09 wrote:
taxact does the same thing, except they do not insert an asterisk/note like turbotax does, so i guess that's nice.
i switched from taxact for this very reason. however, i cannot access that worksheet. i already e-filed for 2020 and can only access the copy of the return i already downloaded. i see no way to access any kind of worksheet. (i got a CP2000 notice for 2016. i want to have the 2020 worksheet ready in case i get another notice.)
can someone from turbotax help me find that worksheet?
If you are using the desktop version switch to the forms mode and open the 8606 form and click on the worksheet.
If using online version, then use "tools" and print all forms and worksheets.
That is Worksheet 1-1 in IRS Pub 590-B
https://www.irs.gov/publications/p590b#en_US_2019_publink1000270091
thanks. i eventually found it. the "tools" option is not available unless you 'trick' the system by saying you want to add a state return. before doing that, all that was available was "tax home" and "documents."
My lines 16-18 in form 8606 were also blank for 2020. Here is how I fixed it when comparing things to my 2019 forms, where everything worked fine:
- Go to View>Forms
- Go to your form or forms (if the spouse has one too) 1099-R, page 2.
- Mine had box B1 checked. Uncheck box B1. TurboTax allows you to do that.
- Unchecking B1 should automatically populate your box B4.
- Click also box B5.
- Now go to form or forms 8606. Lines 16-18 should be populated.
@Publius-of-Maryland wrote:
My lines 16-18 in form 8606 were also blank for 2020. Here is how I fixed it when comparing things to my 2019 forms, where everything worked fine:
- Go to View>Forms
- Go to your form or forms (if the spouse has one too) 1099-R, page 2.
- Mine had box B1 checked. Uncheck box B1. TurboTax allows you to do that.
- Unchecking B1 should automatically populate your box B4.
- Click also box B5.
- Now go to form or forms 8606. Lines 16-18 should be populated.
If all the IRA was converted and the year end value is zero then box b1 must be checked. Box b4 is only for a partial rollover.
If line 15 has a * next to it then the calculations are on the "Taxable IRA Distribution Worksheet" as described in IRS Pub 590-B worksheet 1-1.
On top of boxes B1-B3 it says:
"Rollover: Enter traditional IRA or pension distribution that was rolled over to a pension or **traditional IRA**. **Enter Roth IRA rollover or conversion on lines B5 or B6 below**" (my emphasis)
Moreover, after box B3 it says:
"Roth IRA Rollover or Roth IRA Conversion: Enter distribution, other than from a designated Roth, that was rolled or converted into a Roth IRA"
Box B4: "Amount of this distribution that may be rolled or converted to a Roth IRA". I did a very vanilla back door roth conversion (nothing in the traditional to start, $6k to the traditional, next day rolled it over to the roth, thus the 1099-R form), so in my case in this box I put the total that came out of the traditional IRA, $6k.
Box B5: "Check this box if the entire amount on line B4 above was converted to a Roth IRA". Yes in my case (and for many in this thread), so I checked that box.
Box B6: I left blank because I rolled the entire amount in B4.
The bottom line, again, is that 1) unchecking B1, 2) declaring $6k in B4 and 3) checking B5, in my case populated correctly lines 16-18 of form 8606. I had to fix this via forms this year because, in the Step-by-Step section, for some reason, I did not get detailed questions about whether this distribution from the traditional IRA was rolled over into a roth. And then, not surprisingly, form 8606 was missing data.
TurboTax does not support the forms mode for data entry and doing so voids the accuracy guarantee. Some of the text in the forms mode has error in it and might not properly link the forms.
This should work fine in the interview.
Backdoor Roth problems are often caused by a failure to first enter any 2020 non-deducible contributions in the IRA contribution interview so they go on the 8606 form line 1. Another common error is not entering the year end value that makes the calculations incorrect.
The 1099-R interview if the IRA/SEP/SIMPLE box is check will ask what yiu did with the money - say that it was "moved" and then that you did a combine of things and enter the amount converted in the lower box. After the 1099-R summary page keep going and it will ask if you tracked non-deductible contributions - say yes and it will ask for prior years basis and then year end value.