How can I enter the 2019 value of my IRA on Form 8606?

[DawnC]

We'll automatically generate and fill out Form 8606 (Nondeductible IRAs) if you reported any of these on your tax return:

• Nondeductible contributions made to a traditional IRA
• Distributions from a traditional, SEP or SIMPLE IRA that had nondeductible contributions (excluding rollovers, conversions, recharacterizations, qualified charitable distributions, one-time distribution to fund an HSA, or return of certain contributions)
• Conversions from a traditional, SEP, or SIMPLE IRA to a Roth IRA
• Distributions from a Roth IRA (other than rollovers, recharacterizations, or a return of certain contributions)

However, if any of these 3 situations apply to you:

1. You received a distribution from an inherited traditional IRA that had nondeductible contributions
2. You transferred an inherited plan account to a Roth IRA
3. You received a distribution from an inherited Roth IRA that was not a qualified distribution

then you'll have to download and print Form 8606, manually fill it out (instructions), and print and file your return, as you won't be able to e-file.

To trigger the 8606 in TurboTax

For the 4 situations listed at the top of this article, you can trigger Form 8606 with these instructions:

1. Open your return if it isn't already open.
2. Inside TurboTax, search for this exact phrase, including the comma: 8606, nondeductible ira contributions
3. Select the Jump to link in the search results.
4. Proceed through the IRA section, answering questions as you go.
5. When you reach the screen Any nondeductible contributions to [taxpayer's] IRA? answer Yes, then continue. We'll generate and fill out the 8606 behind the scenes.

Tip: On joint returns, 8606-T stands for "taxpayer" (first person listed on the return) and 8606-S denotes "spouse."

Related Information:

• Where do I enter my Traditional or Roth IRA?
• Where do I enter my SEP IRA contributions?
• What are Traditional IRA to Roth IRA conversions?

[catlvr]

After spending hours on this, I think the fact is you can not enter values manually onto the 8606 form on the on line version, but you can on the downloaded version.  I printed out the whole return in which part of the 8606 was wrong then whited out the bad parts and filled out the form by hand with a pen.  I also had to do the same on the 1040.  I then sent the thing in snail mail style.  Turbo Tax was of no help in this.

[macuser_22]

You do not entered it directly on then 8606 form.

It is entered this way:Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2019.

That will produce a new 8606 form with the taxable amount calculated on lines 6-15 and the remaining carry-forward basis on line 14.

The year end value you entered will be on line 6.

[hattywu33]

Thank you for the answer, it is very helpful!

My situation is similar here but different - I've e-filed for 2019, and just completed a conversion so now I need to file an amendment for 2019. Do I need to wait for the 1099-R to amend or is there a way to amend in Turbotax without a 1099-R?

[macuser_22]

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@hattywu33 wrote:

Thank you for the answer, it is very helpful!

My situation is similar here but different - I've e-filed for 2019, and just completed a conversion so now I need to file an amendment for 2019. Do I need to wait for the 1099-R to amend or is there a way to amend in Turbotax without a 1099-R?

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What do you mean by "just"?

If the conversion was after January 1, 2020 the it can only be reported on your 2020 tax return a year from now and you will receive the 1099-R in January of 2021.

[xdye]

I did the conversion from traditional IRA to Roth IRA in 2019 and I forgot to include the 8606  form when e-filed 2019 tax form. Do I now have to download 8606 form and mail it to IRS or I can still file it through turbotax? Thanks

[macuser_22]

You can only file a stand-alone 8606 if all you are reporting is a new after-tax contribution and nothing else on your tax return changes.

Because you made a Roth conversion then properly applying the basis and doing the 8606 calculations the taxable amounts and tax due or refund will change so the 8606 can only be filed with a 1040X amended tax return.

-- First, *wait* to see if your return has been accepted or rejected by the IRS or state. DO NOT do anything until you receive the accept or reject e-mail.

-- If rejected, you can correct and re-send your return.

-- If accepted you should *wait* until your return has been processed and you receive your refund or conformation that any tax due has been paid. (If you file an amended return while you first return is being processed it can cause extended delays for both returns if two returns are in the system at the same time). In addition, if the IRS makes any change on your original return, you might end up having to amend the amendment – a sticky process that can take a year or more).

-- Then you can start the amend process.

It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it. That is the only proof of mailing that the IRS will accept.

-- Amended returns can only be mailed - allow 8-12 weeks - can take up to 16 weeks (4 months) for processing.

See this TurboTax FAQ for help with amending:

https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed

You can check the status of your amended return here but allow 3 weeks after filing for it to show up:
https://www.irs.gov/filing/wheres-my-amended-return

[xdye]

Thanks for the detailed explanation that is very helpful. I guess I still didn't make my question completely clear. What I did is backdoor Roth IRA, basically contribute to after-tax traditional IRA and immediately convert it to Roth IRA. There is no tax implication involved here and simply need to report this contribution to IRS. In this case do I need to file an amendment or it's okay to mail a standalone 8606 form to IRS? Thank you

[macuser_22]

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@xdye wrote:

Thanks for the detailed explanation that is very helpful. I guess I still didn't make my question completely clear. What I did is backdoor Roth IRA, basically contribute to after-tax traditional IRA and immediately convert it to Roth IRA. There is no tax implication involved here and simply need to report this contribution to IRS. In this case do I need to file an amendment or it's okay to mail a standalone 8606 form to IRS? Thank you

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If it was a 2019 contribution for 2019 and a 2019 Roth conversion and there was no 2019 8606 then you did NOT do a backdoor Roth.   That requires a 8606.   To do it properly you must amend 2019.  It is not simply a 8606.

[sahurd]

I've had 2 years in a row where TurboTax seems to have messed up Form 8606.  I did non-deductible traditional contributions and then converted them to Roth.   I enter the 1099-R information (including the check box for "taxable amount not determined".   I indicate it's not an inherited IRA.  When asked what I did with the money, I say "I moved the money to another retirement account".  And within that "I converted all of this money to a Roth IRA account."  A few screens later, when asked if I made any nondeductible contributions to my IRA, I said "yes".  My total basis as of 12/31/17 (for 2018) was 0.  On the next screen, the value of my account on 12/31/18 was 0.  The form 8606-T that is generated does not include the roth conversion amount of line 8, & several subsequent lines.  I think that may be messing up the IRS, as they just sent me a notice regarding this issue.

Any ideas?

[fanfare]

reply to your notice now that you will be shortly submitting an amended tax return that correctly shows what you did. Part III explanation on form 1040X will explain what you did with your IRAs. Include dates and amounts.

[dmertz]

sahurd, it's likely that TurboTax placed asterisks next to lines 13 and 15 of your Forms 8606 to indicate that TurboTax used Worksheet 1-1 of IRS Pub 590-B instead of using lines 6 through 12 of Form 8606.  If the IRS is questioning your Form 8606, you'll need to provide them with a copy of this IRA Deduction Worksheet produced by TurboTax  ("IRA Worksheet" in TurboTax's forms list).

[psanand]

I am trying to update my 2019 Roth conversion using form 8606 for 2019. Opened by TaxReturn for 2019 but it is not showing the questionnaire for "8606, nondeductible IRA contributions". As far as I remember, it did not show these questions back last year when I was doing my taxes for 2019 and that's why I missed filing 8606 for 2019. I am using TurboTax Premier 2019. 

I followed the steps described in search results for "8606, nondeductible IRA contributions" but it doesn't show "jump to" selection list.

How do I enter 8606 in my 2019 return (and print same for filing with IRS via mail)?

[macuser_22]

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@psanand wrote:

I am trying to update my 2019 Roth conversion using form 8606 for 2019. Opened by TaxReturn for 2019 but it is not showing the questionnaire for "8606, nondeductible IRA contributions". As far as I remember, it did not show these questions back last year when I was doing my taxes for 2019 and that's why I missed filing 8606 for 2019. I am using TurboTax Premier 2019. 

I followed the steps described in search results for "8606, nondeductible IRA contributions" but it doesn't show "jump to" selection list.

How do I enter 8606 in my 2019 return (and print same for filing with IRS via mail)?

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A couple questions,

Did you make a 2019 non deductible IRA contribution?

Did you have prior year (2018 or before) nondeductible contributions reported on a prior years 8606 form?

When you enter the 1099-R it asks if you have made nondeductible contributors.