Form 8606

[phee19]

I received a distribution from an inherited IRA with basis. Although TurboTax asks about the basis, it requires the taxpayer to calculate the taxable portion offline. I do this every year by manually preparing Form 8606. Although TurboTax correctly posts the taxable portion of the distribution, it does not generate Form 8606 that is required by the IRS. Every year I override Form 8606 with the correct entries and attach it to my 1040 which I have to mail because Iam unable to Efile the return because of this overridden form. Does anyone know how to get this form to populate?

[JillS56]

In TurboTax, search for this exact phrase, including the comma: 8606, nondeductible IRA contributions. Select the Jump to link in the search results. Proceed through the IRA section, answering questions as you go.

Where do I find Form 8606?

To trigger the 8606 in TurboTax

For the 4 situations listed at the top of this article, you can trigger Form 8606 with these instructions:

1. Open your return if it isn't already open.
2. Inside TurboTax, search for this exact phrase, including the comma: 8606, nondeductible ira contributions
3. Select the Jump to link in the search results.
4. Proceed through the IRA section, answering questions as you go.
5. When you reach the screen Any nondeductible contributions to your IRA? answer Yes, then continue. We'll generate and fill out the 8606 behind the scenes.

Tip: On joint returns, 8606-T stands for "taxpayer" (first person listed on the return) and 8606-S denotes "spouse."

[phee19]

This method only works on my husband’s IRA which was not inherited. His Form 8606 has always generated. This does not work on my inherited IRA.

[fanfare]

Do you have the correct taxable amount on Line 4b?

E-file your return, don't file on paper.

After it is ACCEPTED,
get Form 1040-X from IRS website and mail it in with your 8606, which you can also get in fillable PDF.
Note: since you are not changing any dollar amounts on your amended  tax return, you can leave all the lines 1-23 EMPTY.
The names on 8606 should be "<owner> and <your name> BENE" or Beneficiary if it fits, and your SSN.

Part III explanation: "didn't include Form 8606 with e-File".

You will have to mail it so this does not use up your one 1040-X e-File.

In a few months to a year, you will get an acknowledgement from the IRS.

[dmertz]

TurboTax simply does not support the generation of Forms 8606 for distributions from inherited IRAs.  You have no choice but to print and mail your tax return if you want to include this form in your original filing.

[phee19]

This method does not work for an inherited IRA with basis. Apparently TurboTax will not generate a Form 8606 for an inherited IRA. The form has to be manually prepared by the taxpayer then attached to Form 1040 which is then mailed to the IRS. I don’t understand why TurboTax can’t code the software to generate this form so the taxpayer can then efile.

[fanfare]

The method I described above on 2-26 will work.

• you can calculate the taxed portion on Form 8606 yourself to discover the proper amount for 1099-R box 2a.
• you can start a separate tax return in desktop TurboTax and use that one to calculate the Inherited IRA taxed  portion.

[phee19]

The issue I have is not the calculation of the taxable amount of the distribution. I have done that myself over the past 10 years by following the instructions on Form 8606. The IRS requires the inclusion of Form 8606 with Form 1040. Since TurboTax will not generate Form 8606 for an inherited IRA, I have to override the form which precludes me from Efiling. 

[fanfare]

You're missing the point by a mile.

You just enter the correct taxable amount when you enter 1099-R and uncheck the "not determined" box.

No Form 8606 is generated in that case.

[emilsalve]

We were excused from taking a required minimum deduction in 2020 because of Covid, but we took  RMDs in 2021.

How can I check Form 8606 in order to see that the correct basis and the correct total value for our IRAs are included on those 8606 forms?

[fanfare]

@emilsalve 

You have to do this by visual inspection.

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend if a TurboTax update changes your return or for any other reason,

AND, to find your AGI next year.

[jtax]

@fanfare I appreciate the suggestion to efile and then mail in a 1040X with the manual 8606. But I was worried because the 8606 instructions say

File 2021 Form 8606 with your 2021
Form 1040, 1040-SR, or 1040-NR by
the due date, including extensions, of
your return.

And by your method the 8606 is not filed with the 1040. 

But I found authority for either filing a 1040x as you suggest or a "second" 1040 before the due date. (this does NOT say extended-due date). Basically in that case the IRS considers the 1040x or second 1040 to be a "superseding return" and will deem it to be timely filed and (at least for a second 1040) to override anything on the first return.

See I.R.M. 21.6.7.4.10 https://www.irs.gov/irm/part21/irm_21-006-007r#idm140031113580544

Also of interest is https://www.meadowscollier.com/amended-tax-return-or-superseding-tax-return

[Boongallager1]

I have an old non deductible contribution to my IRA and need form 8606 to report it . How do I bring the form up

[fanfare]

If you want to file an "old" missing 8606 you must get form 8606 for the year in question from the IRS website under "Forms".

[jtax]

Yes, please clarify what you mean by "old?" Also is it for an inherited IRA or it it your own IRA?

Technically you may not be able to file an old 8606 since the instructions require that the form be filed with your 1040 (unless you don't have to file 1040, then you may mail the 8606 separately). The prior discussion we've had here is about whether you can file an amended return with the 8606. It's pretty clear to me that you can do that before the due date, but it isn't so clear beyond the due date, much less for prior years. On the other hand it seems strange to not allow an amended return to claim a missed deduction for "open" years. Yet there some things (like various "elections" that you can't make late or cannot change after the due date or filing of a return).