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Level 2
posted Mar 17, 2021 9:13:44 AM

Incorrect 8606 carryover basis

I'm using TurboTax Premier on my Windows desktop.  In 2020, I rolled over $37,000 from my IRA and made a $100 QCD.  My 1099-R reports the $37,100 distribution with a distribution code 07.  My TurboTax 1040 correctly reports the $37,100 distribution on line 4A and a $0 taxable on amount on line 4B.  However Form 8606 line 14 reports a $100 reduction (line 14) in my 2019 carryover basis (line 2) despite the fact that there are no entries (nor should there be any entries) on lines 4-13.

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1 Replies
Level 15
Mar 17, 2021 10:00:50 AM

Yes, this is a bug in TurboTax.  My notes show that I reported it back in 2016 and nothing was ever done about it.

 

If there is no reason for Form 8606 to be included in your filed tax return (no Part II or Part III), I suggest that after filing your federal tax return you override and correct line 14 of Form 8606 so that transferring your 2020 tax file into 2021 TurboTax to begin your 2021 tax return will transfer in the correct basis.