I found a bug with form 8606, I could not change it manually, but turbotax link it with form 1099, which does not have a complete information for form 8606.

[gip17]

for 1099 does not have roth conversion informaiton, but form 8606 need that. I can download the form and mannaul fill the form, but then I would not be able to find my tax return online.

[DanaB27]

To clarify, you have a Form 1099-R for a conversion to Roth IRA? You can indicate in the follow-up questions that it was a Roth conversion and TurboTax will fill out Form 8606.

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion" screen and choose “I converted some or all of it to a Roth IRA”
5. On the "Here's your 1099-R info" screen click "Continue"
6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

[gip17]

Hi Dana, 

even I follow your suggestion/steps, the form 8606 is still not right. first, I converted all my traditional IRA contribution in 2024 into Roth IRA, after I followed your step, line 8 still showing blank ( which should showing up my total conversion amount. ), line 16, 17,18 did show up some numbers after the new steps you mention, but the number are not right.  second, my 1099-R 2024 included my 2023 and 2024 2 years contributions ( I did around Feb 2024),  form 8606 should input only information for year 2024, but it is not, since turbotax now just use what information showing up on 1099-R form.  WHY Intuit does not allow users to manually change form 8606? I found my last year form 8606 was not right also due to the same reason, I would need to input some explanation on this year 's return forms to explain the situation caused by turbotax.  

[DanaB27]

You should have entered the nondeductible contribution on your 2023 return and have a 2023 Form 8606 with a basis on line 14 this will be entered into TurboTax when asked if you made  “Any Nondeductible Contributions to Your IRA?” at the end of the retirement interview. This basis will then appear on line 2 of the 2024 Form 8606.

You also need to add your nondeductible traditional IRA contribution for 2024 on your 2024 return:

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select “traditional IRA”
4. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
5. Enter the amount you contributed
6. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
7. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
8. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
9. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

After this entry TurboTax will enter this nondeductible contribution on line 1 of the 2024 Form 8606.

Please see How do I enter a backdoor Roth IRA conversion? for additional information.

[gip17]

HI Dana, 

thanks for your helps!  I did follow all the steps and links you provided to input /change the inputs on my 1099-R entries ( under personal income) and traditional and ROTH IRA contributions ( under deduction and credits) . I am using home and business version.  but things still not right. 

here is the details:  I am at age 54, I made non-deductible traditional IRA contribution for year 2023 $7000 and for year 2024 $8000 in Feb 2024 ( before 4/15/2024, so I still could contribute for year 2023), now I am doing my year 2024 tax return, and my year 2024 1099-R  including my total contribution $15000, and distribution $15000, they did not break the details of 7000+8000, I input my 1099 just as it is, and follow the all the steps you mentioned and the links you provided, I did input $8000 or $15000 on the " amount converted to roth IRA", either ways line 18 of form 8606 would be some 3 or 4 thousands dollar for taxable amount. and line 8 showing blank( which is wrong).  I did not have any other traditiaonl IRA contribution and balance other than the ones I made for roth conversion, I should not have any taxable amount from the contribution and conversion. it is a very clear to me it is a bug.  if possible please help me out. I am doubt that the bug could be fixed soon, I may have to do manually this year. if not been fixed, I will have to go other verndor next year for my tax return. thanks. 

[DanaB27]

It would be helpful to have a TurboTax ".tax2024" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

[gip17]

@DanaB27 thanks Dana, I uploaded my return Token:624818150-34545858  .  Please just focus my two 1099-R forms, one for myself, one for wife, both with contribution for year 2043 and year 2024, all of them (contribution for year 2023 and year 2024 have been fully converted to roth IRA in march 2024, not other traditional IRA contribution or balance ( myself balance $2.2 dollar only).  and also focus linked two form 8606, one for myself, and one for my wife.  Specifically line 8 should not be blank( should be the amount which have been converted into roth IRA, line 16 should be 0 or close to 0.   No need to check other forms. Thanks!

[DanaB27]

Thank you, I reviewed your return. You didn't enter the basis from your nondeductible Traditional IRA contributions for 2023 on the "Let's Find Your IRA basis" screen. You should have reported the nondeductible Traditional IRA contribution on your 2023 return and have a 2023 From 8606 with the basis on line 14. If you didn't file a 2023 Form 8606 with your original 2023 return then you will have to send it to the IRS now. 

You have to enter this basis from the 2023 Form 8606 line 14 in your 2024 return either during the IRA contribution interview or at the end of the retirement interview on the "Let's Find Your IRA Basis" screen. 

If you made a nondeductible $7,500 contribution for 2023 then this basis on line 14 of your 2023 Form 8606 should be $7,500. When you enter this in your 2024 interview then this basis will appear on line 2 of the 2024 Form 8606.

Note, if you have a * next to line 13 then TurboTax is using the "Taxable IRA Distribution Worksheet" to calculate the nontaxable portion according Pub 590-B and line 6 through 12 of Form 8606 will be blank.
 

[gip17]

@DanaB27 

Thanks for reviewing. I just uploaded my 2023 return also. token 624818150-43080577.

as you can see my 2023 form 8606 also not right. 

here is the complete picture:  I and my wife did not have any traditional IRA account balance by dec 31 2023( we did not make any roth conversion either before year 2024 march, we do not need to file form 8606 before year 2023).  and in Mach 2024 both me and my wife contribute nondeductible IRA contribution for year 2023 and year 2024 and immediately converter them to roth ira( no additional deductible IRA contribution) , so the traditional IRA balalance is 0 or ( $2.2 for interest for the one day).  when I reported my year 2023 tax return in March 2024, I did not have the 1099-R yet, but anyhow I reported the form 8606 with turbtax, somehow it is wrong and I did not realize that is the tool bug issue, I did not try manually to correct it.  if is is right, my basic in year 2023 line 14 would be 0, since all of non-dedcubile contribution were converted to roth IRA( no deductible contribution to IRA).  now for tax return 2024 , if everything right were filled in right, my form 8606 would be also show 0 taxble .  I think I have two choice, one is manually input this year and last year form 8606 and write a full explanation to IRS to get it done by mail. or I would just change my 1099 numbers to make it no tax, which I still could send my tax return online, but if use this way I know I may have to work with IRS from the beginning again if they ask for information. 

 I hope you could tell the problem I have, if everything is right, I should not have any basis, and no taxable contribution either. ( all my contributions are non deductble with limit for each year, and all of them being converrted into roth IRA by law. no additional contribution being made which would need to pay tax)

it would be great if you could tell me how to write explanation letter within the software , so I still could make the correct form and explantion online and file online, I really do not want to file manually by mail. appreciate your help and support. thanks.  

[MindyB · Accepted solution]

First, since you made a nondeductible IRA contribution in 2024 for 2023, your 2023 8606 should not have an ending balance of zero.  It should have the value of the 2023 contributions, reported on line 1.  I have reviewed your sanitized return and confirmed that you entered your contributions properly. There is no need to amend your 8606.

You should not report the rollover form the 1099-R on 2023.  You correctly did not do so.  

Now, for 2024, you have received a 1099-R for the rollover of the nondeductible contributions made in 2023 and 2024.  This is also correct.

You have basis in the nondeductible IRA contributions made in 2023, and you made nondeductible contributions in 2024.  Report the 2024 nondeductible contributions in the Credits and Deductions section of TurboTax, just like you did last year.

Finally, since the conversion for both years happened in 2024, it is correct that they were both reported to you on the 2024 1099-R.  In order to ensure no tax is computed on the conversion, since you did not deduct them in the first place, after you enter the 1099-R, continue through the interview until you are asked if you moved the money through a rollover or conversion. Answer that you converted (all of it) to a Roth IRA.

Here is some more information and tips on navigating the software: How do I enter a backdoor Roth IRA conversion?

[gip17]

@MindyB 

Great! I think you explained it very clear, so Turbotax is good with form 8606, I made the changes follow your guides and it works. appreciate!