Is it correct that I do not need to include the value of inherited traditional IRAs on line 6 of Form 8606?

[SJGTX]

@bprice1946   I have this exact same issue where the Inherited IRA distribution and consequent use of the cost basis for the taxpayer's personal Traditional IRA was being used for the Inherited IRA (which had no basis.) Definitely a glitch in the software this year as other years it has been reported correctly.  I spent two hours on the phone with the Turbo Tax agents. They escalated to higher level but even then they had questionable understanding of the tax rules regarding this and were unable to correct this. They weren't aware of a workaround other than manually overriding the form (and thus requiring me to have to mail in return vs e-file, which isn't acceptable in my opinion.) I actually traced this error back to the worksheet (1099R Summary Worksheet) and found that the Inherited IRA distribution is not being correctly backed off on the worksheet on Line 1c, nor is it being entered on the taxable amount line 7 of the worksheet so that the tax can be calculated outside of the 8606.) I am glad to know I am not the only one with the problem and that Intuit is working on it. I will try the suggested workaround. The Inherited IRA definitely should not be appearing on the 8606. Thanks.

[SJGTX]

I just tried the suggested workaround of toggling the deductible/nondeductible contributions button on the interview. It worked! Now the entries are correct and the Inherited IRA did not carry over to the 8606 in error. Thanks for the suggestion! Turbo Tax still needs to fix this as not everyone will recognize this error or know that TT is reporting it incorrectly.

[SJGTX]

@bprice1946 Re: your comment "Nope. still treats inherited IRA (non-spouse) just like my own IRA's. Probably has been for years...", I wanted to reassure you that the issue with the Inherited IRA being transferred to the 8606 this year did not appear in on any of my returns in previous years.  I think this is the first year to have this software glitch. 🙂

[CMW38]

Toggling No to Yes and back to No on the  inherited IRA basis question only corrects the amount on line 7, Form 8606 temporarily.  When you restart TurboTax, the amount on line 7 includes the inherited IRA distribution again. 

You can also temporarily fix the problem by changing the code in box from 4 to 7 and back again.  But, again, the fix is only temporary.

I believe TurboTax requires a more permanent fix to the coding.

[macuser_22]

Contact customer support and report the problem. 

There is no single published number because it changes contently depending on the nature of the call and agent availability. Following the link below will either give a current number for you to call or take your number for a callback.

(Note that phone support is for paying customers only. There is no phone support for Free Customers.)

Here is a TurboTax FAQ for contacting customer support.

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

[SJGTX]

Yes, CMW38, you are absolutely correct! How depressing to hear the fix is temporary, but I am so grateful for the heads up. Maybe I can do the temporary workaround right before e-filing and it will work long enough to get the return sent to the IRS. I agree, this is something that Turbo Tax needs to fix ASAP. Thanks.  

[SJGTX]

Thanks Macuser_22. I did report the problem to Turbo Tax a week or so when I first discovered it, and I spent two hours on the phone with them with minimal success. The agent escalated to a higher level agent, who tried to be helpful and confirmed that I was filling everything correctly, but then he talked to someone else who tried to explain it away with the new 10-year IRA distribution rule, which had absolutely nothing to do with my situation with an inherited IRA from a parent who died in 2011.  When I had to start explaining the tax rules to them I figured it was a lost cause and gave up. He did say he would report it but I will try to call again with more information. Thanks.

[macuser_22]

The more that complain the faster it will be fixed.