TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Level 2

Question

Form 8606

Forum|Forum|4 years ago
February 26, 2022
5 replies
1 view

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

Level 10

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:

Open your return if it isn't already open.

Inside 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.

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."

phee19Author

Level 2

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

Level 15

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.

emilsalve

Level 2

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?

R-GK

Level 2

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

Yes, this was so for us, with ongoing 8606. When TT imported from last year, it found my 8606 because I had a distribution, but not spouse's, who had none.

I typed his info manually, thought mine would automatically generate correct numbers, but TT hid all the calculations in Zoom sheets and the actual form to be filed had many blanks with asterisks. Since the IRS won't have the software to Zoom into the calculations, I'm going to over-ride them and type it in myself.

Yes, we print them out every year, so we know the current basis. Sorry we ever did this, what a pain. Make a Roth instead.

dmertz

Level 15

"BACK DOOR ROTH" filing is NOT well know, so even Brokerage people file 1099-R wrong when I ask them to roll my post-tax deposit to IRA and then immediately roll to ROTH. So be aware they put on all 1099-R box 7 code "2" which is like saying 'You took $7,000 out to go casino or shopping mall".

Your job is to correct into a "Back Door Roth".

If leaving code "2" on 1099-R, I get tax 24% of the $7,000, or $1,680 added instantly to my total TurboTax due box. This is wrong since $7,000 is post-tax (it came from my WellsFargo, so it's post-tax or already tax). So by converting to Code "G: DIrect rollover and rollover contribution" (not "H: Direct rollover of a designated Roth account distribution to a Roth IRA"), it prevents 24% or %1,680 from adding to my total tax.

Note if IRA $7,000 already there, then it's a "Conversion" true,

but if it's deposited and "then backdoor Rollover to Roth" then it's a "G: Rollover" and so a "Backdoor" since it prevents from being taxed again. My Broker said broke must generate a "2: taxable distribution", but it's your job as tax filer to "Change" it to whatever since ONLY you know what is up (which is a case of Back door Roth). He is familiar with Backdoor Roth rollover and said you MUST/SHOULD/ALLOW change 1099-R box 7 explains what you doing.

Do not leave it a "2" since it means it's a distribution and IRS taxes you and thinks you take it out to go shopping with the $7,000, which is not the case.

Make sure you print and manually file 8606 (Turbo Tax buggy, will not generate 8606), as Amend 1040SX if you e-file with TurboTax. If you print and file, then simply insert form 8606 and mail to IRS.

The code 2 is correct. Code G is incorrect.

The taxable amount must be calculated on Form 8606. Either you've provided TurboTax with an incorrect amount for your basis in nondeductible traditional IRA contributions, resulting in an incorrect calculation on Part 1 of Form 8606, or you have a nonzero year-end balance in traditional IRAs, causing your Roth conversion to be largely taxable because only a small amount of your basis applies to the Roth conversion.

Boongallager1

Level 2

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

Level 15

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

Level 10

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).

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

a7035477456

Level 2

(delelte duplicate posting)

Taxruss2548

Level 2

I converted some of my traditional IRA distributions to Roth IRA in 2021. How do I get the form 8606 created I turbo tax.

jtax

Level 10

@Taxruss2548 If you're using the Desktop PC/Mac software it is trivial. Just go to the View menu and choose forms. 8806 (and all used forms) will be on the left. You can also use the keyboard shortcut control-2

If you're using the online TT, the you can only see the forms as part of a print preview. Here's the FAQ on how to do that.

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

a7035477456

Level 2

Form 8606 pop in and out and many time by time you file, it's gone. TurboTax have bug on generating form 8606. Seem entering your full address on 8606 seem to keep 8606 around. But safest to Amend and attached 8606 via manual print each year is SAFEST.