Broken link: IRA Info Worksheet to

[SLKisling]

IRA Information Worksheet line 18 (Combined value of all traditional IRAs) does not populate Form 8606 line 6 (Combined value of all traditional IRAs).

Those of us who saved more than what was deductible years ago will have a Taxable Amount of IRA distributions less that what is reported on our 1099-R. This broken link results in the Taxable Amount being too high. It also affects Form 8606 line 14 the basis for 2023 and earlier years.

Please update.

[dmertz]

If lines 13 and 15c of Form 8606 have asterisks next to them TurboTax is doing the calculation on Worksheet 1-1 from IRS Pub 590-B and is properly leaving lines 6 through 12 of Form 8606 blank.

If TurboTax was simply failing to account for the amount from line 18 of the IRA Information Worksheet, TurboTax would be calculating a taxable amount that is too low, not too high.  It's quite likely that the taxable amount that TurboTax is calculating is correct.

[SLKisling]

No, it seems like a simple broken link: If I double-click on line 6 of Form 8606 it takes me to line 18 of the IRA Information Worksheet. The entry I made there is not carried over to Form 8606. Similarly, "QuickZoom to enter the year end traditional IRA value" takes me to line 18 of the Worksheet, but again... that value does not populate line 6 of the 8606 as it should.

This is a Mac, remember, and there's far fewer people running TurboTax on this platform than on Windows. Additionally, there's likely very few people affected, since most people's Taxable Amount of their IRA distribution is the same as what's shown on their 1099.

[dmertz]

There is no broken link.  Look for the Taxable IRA Distribution Worksheet in forms mode (likely last in the list of federal forms included in your tax return) where you'll find on line 4 the amount from line 18 of the IRA Information Worksheet.

[SLKisling]

You're probably on the Windows version. The Mac version of TurboTax Premier 2023 has no form titled "Taxable IRA Distribution Worksheet." I just confirmed that the link worked in TurboTax Premier 2022, which I believe is the first version made for the Mac platform.

[dmertz]

The Mac version has been around for years.  All versions of TurboTax use the same underlying calculation engine, so it seems quite unlikely that there could be a broken link in the Mac version that is not present in the Windows version.  As I said, a missing entry for Form 8606 line 6 would result in a taxable amount that is too low, not too high, so your observations are not consistent with a broken link to line 6 of Form 8606.

Perhaps the IRA Information Worksheet has lost your basis in nondeductible traditional IRA contributions and because of that TurboTax sees no need for Form 8606, resulting in the entire traditional IRA distribution or Roth conversion being taxable.  It's all too easy to cause TurboTax to silently delete your basis by inadvertently answering No when TurboTax asks if you made nondeductible traditional IRA contributions.  If you actually have no basis in nondeductible traditional IRA contributions carried in from line 14 of your 2022 Form 8606, the only way that you would have basis in 2023 is if you made and entered a nondeductible traditional IRA contribution for 2023.

Also make sure that you did not fail to mark the IRA/SEP/SIMPLE box on the TurboTax's 1099-R form that reports the distribution from the traditional IRA.

[SLKisling]

Thanks, dmertz, your comment about checking that 1099-R got me thinking. Although it was imported, I pulled exclusively from an Inherited IRA (non-spouse, etc.) this year and my own traditional IRA last year. The Inherited IRA would have its own basis, separate from my own, and since I never contributed already-taxed moneys to it there would be no Nontaxable Amount in the distribution.

[dmertz]

Ah, that explains it.  The nothing about an inherited IRA goes anywhere on the Form 8606 for your own IRAs.  If there is basis in the inherited IRA, the pro rata calculation would need to be done on it's own Form 8606 outside of TurboTax and the resulting taxable amount entered into TurboTax during entry of that Form 1099-R.  TurboTax then substitutes this taxable amount into box 2a of TurboTax's form for lack of anywhere else to track it.  (You can enter it directly in box 2a of TurboTax' s form yourself.)  Your filed tax return should then include the Form 8606 prepared outside of TurboTax, which requires paper filing.

[55442]

How do we see the form?  In Windows version > View > forms > there are IRA Wks (worksheets) but no form. 

I see that it shows on "IRA Information Worksheet"

Part II - Roth IRA - Shows a value on line 6 'Basis in Roth IRA contributions' and 8 'Contributions basis carryover as of 12/31/2023' but I did not do that in the interview.

[DanaB27]

To clarify, are you referring to Form 8606? Form 8606 will only be included if you made a transaction that requires it. Please see Who Must File Form 8606 details. 

If you have Form 8606 included on your return for a distribution or conversion from a traditional/SEP/SIMPLE IRA and line 13 has a * next to it, then TurboTax used the Taxable IRA Distribution Worksheet. You usually will find this worksheet at the bottom of the federal list when you switch to Forms mode.

The Roth basis is automatically carried over from prior years. 

@55442