Is TurboTax filing form 8606 wrongly? Should line 2 (basis) include all after tax contributions from prior years? TT has not been carrying-over prior year contributions.

[richbrennan]

Made 1st after tax contribution in 2014 of 5500. TT filed 8606, line 14 showing 5500 total basis (correct).
Made 2nd after tax contribution of 6500 in 2015. TT filed 8606 with line 2 showing 0, line 14 (total basis) = 6500. Same for 2016.

[AmandaR1]

Only contributions that haven't been deducted taxes would be reported as your basis in your IRA (line 2).

[dmertz]

Line 2 of your 2015 Form 8606 should have shown the $5,500 from line 14 of your 2014 Form 8606.  The error in not showing that will have continued to propagate forward.

TurboTax losing your basis information can result from not transferring in a previous year's tax file that recorded you traditional IRA basis or by inadvertently telling TurboTax that you did not make nondeductible traditional IRA contributions.  If you tell TurboTax that you did not make any nondeductible contributions, TurboTax will silently delete any basis carried in from your prior-year tax return.

[richbrennan]

Thanks, I figured the basis should have carried over. The error in not doing so is with TT however, as I’ve reported non-deductible contributions every year since 2014 (and TT has filed 8606’s each year). I forced the correct basis on this year’s form. Hopefully TT fix the error and carry it over properly next year, now I’m aware of it, I’ll know to check!

[richbrennan]

Thanks, I figured the basis should have carried over. The error in not doing so is with TT however, as I’ve reported non-deductible contributions every year since 2014 (and TT has filed 8606’s each year). I forced the correct basis on this year’s form. Hopefully TT fix the error and carry it over properly next year, now I’m aware of it, I’ll know to check!

[dmertz]

If 2015 and 2016 Forms 8606 were improperly prepared, you need to submit amended versions of those forms.

[leo-quintero]

I just experienced the same thing.  Unfortunately, I caught it after I submitted my taxes.