Form 8606 line 2-Nondeductible contributions basis

[CaRoFi]

I am using the TurboTax Online Premium version, and I have the same problem reported by other members, i.e. I am unable to enter a non-zero amount on line 2 of Form 8606 because the question “Any Nondeductible Contributions to Your IRA?” does not appear during the interview. As per the advice I found online, I clicked on the Why am I unable to report my 2023 for 8606 basis?  link to sign up for updates. It looks like the issue was reported a while ago, but there is no fix or update so far. I am ready to file, and this is the only issue holding me back. I don't know if it's going to be fixed on time, and what to do if it doesn't. What are my options ? Should I print my federal return from TurboTax, insert a manually corrected Form 8606, and then mail my return the old fashioned way, rather than file electronically via TurboTax ?

[DavidD66]

I recommend you file an extension.  Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return gives you an additional 6 months (until October 15) to file your return.  To file an extension using TurboTax go to Free federal tax extension is now available 

Extending your filing deadline does not change the deadline for payment of any tax that is due. If you think you owe, estimate the amount and pay it by the April tax return filing due date.

[CaRoFi]

Thank you, DavidD66.

[dmertz · Accepted solution]

TurboTax seems to be functioning normally with respect being able to enter your basis in nondeductible traditional IRA contributions.  During entry of Forms 1099-R, this question will only appear after clicking the Continue button on the page that lists the Forms 1099-R that you have entered if you have entered a Form 1099-R that has the IRA/SEP/SIMPLE box marked.  If you have entered no such Form 1099-R, TurboTax has no need to ask this question in this section.

You can also reach this question by indicating under Deductions & Credits that you have a traditional IRA and proceed through the questions that follow.  This will allow you to add the basis to TurboTax for tracking purposes even if you made no distributions that are required to be reported on Form 8606 Part I.

[CaRoFi]

Thank you, dmertz.

We did not receive 1099-R forms. I had tried entering the basis under "Deductions & Credits", but as I stated earlier, the question “Any Nondeductible Contributions to Your IRA?” did not appear during the interview. However, after writing yesterday to TurboTax support, they fixed the problem, since the question appeared today.

[9085318228]

Both my wife and I require use of Form 8606. We were both able to enter the non taxable info in TurboTax in prior years. For some reason only my wife had the form come up to enter the required info. I was unable to enter the info for my tax free amounts.

[dmertz]

If you have entered no Forms 1099-R and have not entered any nondeductible traditional IRA contributions made for 2024, TurboTax has no reason to generate any Form 8606 and generating Form 8606 would be improper.  Your and your spouse's last filed Forms 8606 still apply with regard to your and your spouses basis, shown on line 14 of that form.

[9085318228]

I was not given the opportunity to enter the info required to report the tax free portion included in my minimum required distributions for 2024. In prior years I entered the required info for both my wife and I. For some reason the screen did not come up when entering my MRD, but it did for my wife.

[DanaB27]

The issue has been fixed. Please verify that you have the Form 1099-R assigned to you and that the IRA/SEP/SIMPLE box is checked.

@9085318228