We'll automatically generate and fill out Form 8606 (Nondeductible IRAs) if you reported any of these on your tax return:
However, if any of these 3 situations apply to you:
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:
Tip: On joint returns, 8606-T stands for "taxpayer" (first person listed on the return) and 8606-S denotes "spouse."
Related Information:
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.
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.
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?
@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?
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.
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
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
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
@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
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.
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?
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.
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).
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)?
@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)?
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.
I have been trying for past 3-4 days, multiple times opened my 2019 Tax returns to go over the non-deductible IRA contribution and update to create form 8606 but TurboTax is not allowing. I am not seeing the part you have mentioned below:
"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."
After hitting continue on 1099-R it just jump to completely other section. Very frustrating.
@psanand wrote:
I have been trying for past 3-4 days, multiple times opened my 2019 Tax returns to go over the non-deductible IRA contribution and update to create form 8606 but TurboTax is not allowing. I am not seeing the part you have mentioned below:
"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."
After hitting continue on 1099-R it just jump to completely other section. Very frustrating.
What code is on box 7? Is the IRA/SEP/SIMPLE box checked?
Only IRA's get that question and it comes after the 1099-R summary screen in the 2nd half of the interview.
Thank you first of all for offering your help!
Here is the situation:
2019 was the first year I did backdoor Roth conversion in 2020 prior to April 15th 2020.
1) IRA had .01 cents as of 12/31/2019
2) Contribution $7000 made to IRA on 1/27/2020 for year 2019 from after Tax money
3) Roth conversion on 3/2/2021 for full $7,000.
4) 1099-R-2020 - box 1 7K, box2a 7K, 2b-Taxable Amt Not determined, box7 code=7 IRA/SEP/SIMPLE box checked
I didn't report the deposit made to IRA in 2019 TurboTax as I don't see a 8606 for 2019 b/c TT2019 didn't present those questions.
Q1 - How can I update 2019 Tax Return to create 8606 for 2019 and then send that to IRS?
Q2 - I did the same in 2021 for year 2020 and am hoping that once I correct my 2019 tax return then it should fix the issue I am having with my 2020 return.
Your help is much appreciated.
My 2020 1099-R has:
box 1 7K, box2a 7K, 2b-Taxable Amt Not determined, box7 code=7 IRA/SEP/SIMPLE box checked
@psanand wrote:I didn't report the deposit made to IRA in 2019 TurboTax
That's the problem. In 2019 TurboTax you are required to have reported your contribution for 2019 made in 2020. Doing so will result in TurboTax generating Form 8606 if that contribution was nondeductible. The amount on line 14 of that Form 8606 will transfer to line 2 of your 2020 Form 8606.
Last year I had a similar problem with form 8606. I spent many hours trying to figure out how to enter the data on the 8606. I wound up having to print out the return and white out the entry that Turbo Tax would not let me enter. I then had to go through the rest of the forms and white out everything that was affected by the change I made on the 8606. After that I made copies of the whole thing and mailed it in. You obviously can't file electronically when you do stuff like that.
It seems like Turbo Tax would have this figured out. I have not done my 2020 taxes yet. I hope they have fixed it.
I have heard that if you get Turbo Tax on a disc rather than do your taxes on line that you can make all the entries on your 8606. I hope this is true because that is what I am trying this year.
Good luck!
John H.
@catlvr wrote:
Last year I had a similar problem with form 8606. I spent many hours trying to figure out how to enter the data on the 8606. I wound up having to print out the return and white out the entry that Turbo Tax would not let me enter. I then had to go through the rest of the forms and white out everything that was affected by the change I made on the 8606. After that I made copies of the whole thing and mailed it in. You obviously can't file electronically when you do stuff like that.
It seems like Turbo Tax would have this figured out. I have not done my 2020 taxes yet. I hope they have fixed it.
I have heard that if you get Turbo Tax on a disc rather than do your taxes on line that you can make all the entries on your 8606. I hope this is true because that is what I am trying this year.
Good luck!
John H.
There is no problem entering the year end value in TurboTax.
It has worked fine for many years.
After entering any new 2020 contributions in the IRA contribution section.
Enter the 1099-R - When asks if you have made non-deductible contributions answer yes, enter the last 8606 box 14 value of any, and the next screen will ask for the year end value.
I follow the instruction to search for "8606, nondeductible ira contributions" in the Turbo tax software, however, it doesn't show a link to the form. Could you help with it?
You don't normally enter a 8606 itself. It is automatically created when:
1) You make a new non-deductible Traditional IRA contribution.
2) You take a distribution from a IRA that has a after-tax "basis".
3) You make a conversion of a retirement account to a Roth IRA
If none of those occurred, then the last filed 8606 remains in effect
There are some circumstances when a 8606 must be files for other reasons and might require filing a stand-alone 8606 that must be downloaded from the IRS site and filled out by hand and attached to a mailed tax return.
https://ttlc.intuit.com/questions/1899503-what-is-form-8606-nondeductible-iras-used-for
I have tried multiple times opened my 2019 tax file using TT2019 premier but it does allow me to "jump to" options and also it does not even take me to section where I can enter non-deductible IRA contribution for 2019 (deposit and roth conversion done in 2020).
I am hoping someone can help both of us by providing clear instructions that actually works.