IRA Deduction

[DianeW777]

Yes, I am saying the Form 8606 should be filed now for 2019. The IRS has been known to process Form 8606 that was filed late even one that is filed after the regular three-year statute of limitations for claiming a refund has expired. This is why it's important to file the form to show your after tax/nondeductible contributions and we will assume they will acknowledge it and allow this to be used when you take distribution because you already paid tax on the money you contributed that was not allowed to be deducted on your tax return.

@icnewer 

[icnewer]

thank you @DianeW777 , got it. Do you know how to file form 8606 alone? Do I have to mail all those forms to IRS? is there an online portal available or can I just log into TT to submit this form please?

[DianeW777]

Yes, you will mail Form 8606 to the IRS.  If you are required to file Form 8606 without a 1040, sign Form 8606 and send it to the IRS at the same time and place you would otherwise file Form 1040, 1040-SR, or 1040-NR. Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form.

• Form 8606 Instructions
• Form 8606 (2019)
• Where to mail tax forms (scroll for your state)

@icnewer 

[AthensK]

I am having the same issue.  I am retired and receiving a pension.  I am working full time at a new job and I am not covered by a pension plan with the new employer.  TurboTax will not allow the IRA deduction even though our combined income is well below the threshold.   As a result, TurboTax is indicating that I owe a sizeable amount to the IRS rather than receiving a refund.

Per the TurboTax software:  Limitations of the IRA deduction

- You can deduct all of your contribution if you (and your spouse, if filing a joint return) are not covered by a retirement plan at work.

This appears to be a bug in the software programming logic.  Is there a fix for this being generated?  

[DJ-Poceus]

It seems TurboTax Online has a general 1099 import problem with directly downloading Form 1099 from multiple other financial institutions. Identical problem as defined below was noted in 2022.

2023 Income Tax preparation was going fine until the very last filing step (E-File step 3). Both 2023 Federal and NY State tax returns had passed the earlier final checks. After paying for the alleged checked OK tax returns with no errors found, did payment (Step 1), then entered our ID info as required using our NY State drivers licenses (Step 2). Directly after completing payment (step 1) and entering ID information (Step 2), then get to the last Step 3 – E-File the Federal and State income tax returns. When the e-file button is clicked, Turbo Tax Online software presents an error in Fidelity RMD 1099-R entry in the NY State tax return that must be fixed. However, all data in the subject 1099-R is checked, re-checked, and verified correct multiple times. The problem is reported in this 1099-R Box 14a (the NYS withholding tax) by messaging something like this ...the Box 14a value can not be greater than or equal to the gross distribution. Logical, but the entered value is correct (exactly 10% of the Gross Distribution)! Otherwise put, subject 1099-R Box 14a value is exactly 10% of the Box 1 Gross Distribution (Box 14a value = $440.00, exactly 10% of the true Fidelity RMD Box 1 gross distribution $4,400.00). A professional Turbo Tax Online (2nd/3rd Level) software analyst needs review this problem. This issue that has been present in TT Online software for over 1 year. We experienced the identical problem as last year with the 1099-R importing, a 2022 1099-R Fidelity Investments Turbo Tax Online income tax service, the RMD paid via Fidelity affiliate National Financial Services LLC. Something is wrong with importing Form 1099-R generated by Fidelity Investment's National Financial Services LLC into Turbo Tax Online software. The only error that must be fixed in this 1099 is the detected non-existent error.

Recommendation: Stop the 1099 download into TurboTax Online from other financial institutions until TurboTax software troubleshooters can evaluate and fix your Form 1099 importing software issues. Enter the 1099 date manually.

I am a retired computing engineer and network admin... and capable of communicating with higher level software analyst(s) regarding your unresolved software issue. There is no issue with my Federal Income Tax Return... the problem surfaced only in the 2023 NY State Tax Return filing. Please do so by contacting me, Dave Paul by my known email. Many thanks.

[DJ-Poceus]

Another related issue, and wondering if Turbo Tax Tax Expert software personnel have read the 2023 IRS Publication 590a, changes as copied from IRS website "What's new for 2023."

Modified AGI limit for certain married individuals increased.

If you are married and your spouce is covered by a retirement plan at work and you aren't, and you live with your spouse or file a joint return, your deduction is phosed out if your modified AGI is more than $218,ooo (up form $204,000 for 2022) but less than $228,000 (up from $214,000 for 2022). 

Turbo Tax Online seems to ignore this IRS provision for "certain married individuals."  

[DJ-Poceus]

I neglected to point out the 2022 resolution to the identical problem.  Working with a TurboTax Online tax expeert, we went back to the federal return, deleted the Fidelity 1099-R as directly downloaded into Turbo Tax Online, added a new 1099-R and entered the data manually.  This more or less proved that some issue exists in downloading Form1099 data into Turbo Tax Online.  This case regards a Fidelity Investments 1099 download, but other financial activities (Morgan-Stanley, etc.) seem to have related problems.  Suggestion, enter your Form 1099 data manually into Turbo Tax Online.  I shall from this point on.         

[DJ-Poceus]

I neglected to point out the 2022 resolution to the identical problem.  Working with a TurboTax Online tax expeert, we went back to the federal return, deleted the Fidelity 1099-R as directly downloaded into Turbo Tax Online, added a new 1099-R and entered the data manually.  This more or less proved that some issue exists in downloading Form1099 data into Turbo Tax Online.  This case regards a Fidelity Investments 1099 download, but other financial activities (Morgan-Stanley, etc.) seem to have related problems.  Suggestion, enter your Form 1099 data manually into Turbo Tax Online.  I shall from this point on.         

[User3578]

I had the same problem with the 1099-R, even last year. Unfortunately, manually entering the 1099-R did not solve the issue. I still got the error after deleting and re-entering the form multiple times. This is an outrageous mistake and needs to be fixed. 

[DJ-Poceus]

Finding a TurboTax (TT) Software expert seems to be a fools mission... looking for a software someone at TT willing to look at Tax Form various importing errors (aka TT import-from-many other financial instituations).  My case is detecting non-existant errors in an IRS Form 1099-R from Fidelity Investments imported into my 2023 tax returns.  TT "Experts" are not helpful, and in 2023 cased a problem where my state tax return withholding tax was zeroed out.  Operating under the direction of this "TT Tax Expert", the Form 1099-R Box 14a value was cleared or zeroed out.  After doing this, the running total refund $$ figure was NOT presented following the tax expert directed fiddling... so the deleted (aka "zeroed") value was not detected until AFTER the tax return was e-filed.  I was told there was nothing they could do about the now missing tax witholding.  Very disappointed about the level of competent support on this issue.  I have offered to allow a certified 2nd/3rd level Intuit/TT software coder to use my 2023 tax return for troubleshooting their obvious importing issues and have not heard back from TT on this.  I'm sick of attempting TT contact to resolve this issue.  OBTW, following original TT return filing and receiving the incorrect state refund, I attempted an amended return using TT Online amend function, and the exact same erroneous problem was detected "that must be fixed."  There seems to be no real way to bypass whatever the error is that TT Online software seems to wrongly believe is present in my return (I'll define the probelm simply as -- "corruption in importing IRS Tax Forms."  My 4-decades using TT tax return software is likely over, not going thru this maddening and unacceptable process again next year.

Regards,

DJ... I'm out.