Is there a way to figure, if I have entered correctly the after tax dollars in my IRA before eFiling.?

[MaryK4]

Look at your 2019 Form 8606.  Your nondeductible traditional IRA contributions will be on this form.  See What is IRS Form 8606: Nondeductible IRAs.

[TheUnluckyOne]

This is the first time, I am contributing after tax dollars to a new IRA account. I am converting tomorrow to Roth IRA. My question is, for tax year 2020, all I need is to update part-1 of 8606. There is one question that appears in Deduction and Credits --> IRA, which looks remotely near

Any Nondeductible Contributions to my IRA?

Let us know if you made and kept track of any nondeductible contributions to traditional IRA from 2019 or prior years (This is not common)

Yes, You made and tracked nondeductible contributions to your IRA

No, You did not make and track nondeductible contributions to your IRA

I choose  Yes,  even if I made a contribution only this year in 2021 for tax year 2020

Now before I efile, I want to be sure Form 8606 with Part 1 is created so that I don't have problem next year. How do I make sure, Form 8606 is present. (I want to avoid the hassle of amending)

[ThomasM125]

You should answer "no" to the question on non-deductible IRA contributions, as the program is trying to see if you had done that in previous years, not for 2020. When you entered your IRA contribution for 2020, you were asked if part or all of your current year contributions is non-deductible, so TurboTax already knows about this year's contribution.

Before you file your return, you will have a chance to print it out and review the form 8606. You will see this after you pay for the program.

[TheUnluckyOne]

Hey, Thanks for taking the time and trying to help me. In online TurboTax which is www.turbotax.com, I only get one chance to update my IRA contributions and that is in Deduction & Credits --> IRA Contributions. Here are the questions that I get and the answers right next to it. I see nondeductible contributions mentioned only once

Question - 1
You can contribute to your IRA (or Roth) until Apri 15, 2021 and your contributions will count toward your 2020 taxes

Select the kind of IRA(s) Mr. or Ms. owns or will contribute for 2020. If you own or contribute to both a traditional IRA and a Roth IRA, check both here and we'll work on the traditional IRA first

Mr. Ms.
X O Traditional IRA
O O Roth IRA
O O None of the above
The answer to Question-1 was Mr. has Traditional IRA.

Question - 2
Is this a repayment of a retirement Distribution?

Was the contribution a repayment of money previously taken out of a retirement plan? In other words are your returning money back to your retirement plan after you took a distribution? (This is not common) Learn More

The answer is No

Question - 3
Tell us How Much You contributed

Enter the total amount Mr. out into a traditional IRA for 2020 even if you later transferred some or all of it to a Roth IRA

Note: Do not enter any of following here
- Rollovers

Mr.'s total traditional IRA contributions - 7,000

Tell us how much of the above contribution for 2020 you contributed between January 1, 2021 and Apr 15, 2021 - 7,000

Question - 4
Did you change your mind?

Tell us if you switched or "recharacterized" any of the $7,000 traditional IRA contribution for 2020 over to a Roth IRA contribution

The answer is NO

Question - 5
Any Excess IRA Contributions Before 2020?

Tell us if Mr. contributed more money to this IRA that was allowed in 2019 or any previous year.

The answer is NO

Question - 6
Any Nondeductible Contributions to Mr's IRA?

Let us know if Mr. made and kept track of any nondeductible contributions to Mr's traditional IRA from 2019 or prior years (This is not common)

Most people do not make or track any nondeductibe contributions to their IRAs

Yes, Mr. made and tracked nondeductible contributions to your IRA
No, Mr. did not make and track nondeductible contributions to your IRA

Answer: I chose
Yes, Mr. made and tracked nondeductible contributions to your IRA

Question - 7
Lets find your IRA basis

Remember, most people with traditional IRAs do not make or track nondeductible contributions that give them a basis other than ZERO

If Mr. did make any nondeductible contributions look at your most recent form 8606 Find the box called total basis and enter the number from that box below. If you never filed a form 8606, just enter 0(Zero)

Mr's total basis as of December 31, 2019 - 0.00

Information - 8
Income Too High To Deduct an IRA Contribution

Mr/s modified adjusted gross income(MAGI) is xxx,xxx which puts Mr. over the limit for IRA deductions. To deduct a contribution, you can't have a MAGI over $124,000 while being covered by a retirment plan at work

Information - 9
Your IRA deduction Summary - 0

Appreciate an answer, so that I can correctly say my contributions for tax year 2020 is nondeductible

[TheUnluckyOne]

Hey, Thanks for taking the time and trying to help me. In online TurboTax which is www.turbotax.com, I only get one chance to update my IRA contributions and that is in Deduction & Credits --> IRA Contributions. Here are the questions that I get and answer to the corresponding question. What I noticed is, if my answer to question-6 is No, Mr. did not make and track nondeductible contributions to your IRA, then there is no place to answer that I made a nondeductible contribution

Question - 1
You can contribute to your IRA (or Roth) until Apri 15, 2021 and your contributions will count toward your 2020 taxes

Select the kind of IRA(s) Mr. or Ms. owns or will contribute for 2020. If you own or contribute to both a traditional IRA and a Roth IRA, check both here and we'll work on the traditional IRA first

Mr. Ms.
X O Traditional IRA
O O Roth IRA
O O None of the above
The answer to Question-1 was Mr. has Traditional IRA.

Question - 2
Is this a repayment of a retirement Distribution?

Was the contribution a repayment of money previously taken out of a retirement plan? In other words are your returning money back to your retirement plan after you took a distribution? (This is not common) Learn More

The answer to the question is No

Question - 3
Tell us How Much You contributed

Enter the total amount Mr. out into a traditional IRA for 2020 even if you later transferred some or all of it to a Roth IRA

Note: Do not enter any of following here
- Rollovers

Mr.'s total traditional IRA contributions - 7,000

Tell us how much of the above contribution for 2020 you contributed between January 1, 2021 and Apr 15, 2021 - 7,000

Question - 4
Did you change your mind?

Tell us if you switched or "recharacterized" any of the $7,000 traditional IRA contribution for 2020 over to a Roth IRA contribution

The answer is NO

Question - 5
Any Excess IRA Contributions Before 2020?

Tell us if Mr. contributed more money to this IRA that was allowed in 2019 or any previous year.

The answer is NO

Question - 6
Any Nondeductible Contributions to Mr's IRA?

Let us know if Mr. made and kept track of any nondeductible contributions to Mr's traditional IRA from 2019 or prior years (This is not common)

Most people do not make or track any nondeductibe contributions to their IRAs

Yes, Mr. made and tracked nondeductible contributions to your IRA
No, Mr. did not make and track nondeductible contributions to your IRA

Answer: I chose
Yes, Mr. made and tracked nondeductible contributions to your IRA

Question - 7
Lets find your IRA basis

Remember, most people with traditional IRAs do not make or track nondeductible contributions that give them a basis other than ZERO

If Mr. did make any nondeductible contributions look at your most recent form 8606 Find the box called total basis and enter the number from that box below. If you never filed a form 8606, just enter 0(Zero)

Mr's total basis as of December 31, 2019 - 0.00

Information - 8
Income Too High To Deduct an IRA Contribution

Mr/s modified adjusted gross income(MAGI) is xxx,xxx which puts Mr. over the limit for IRA deductions. To deduct a contribution, you can't have a MAGI over $124,000 while being covered by a retirment plan at work

Information - 9
Your IRA deduction Summary - 0

Appreciate an answer

[TheUnluckyOne]

I have not got an answer yet as to what answer to provide for Question 6 to generate Form 8606. I also went ahead and choose Live Advise support. The first person who chatted with me walked that seven steps for half hour and told me he will transfer me to a specialist, which was just turbo assistant.  Secont time, I asked for a call. She spent an hour and half and told, turbotax does, what is allowed and later asked me to share a copy with analyst. I have shared a copy. I am yet to receive a call

I am doing, what is legal. Here is what Form 8606 from IRS say

Use Form 8606 to report:

• Nondeductible contributions you made to traditional IRAs.
• Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs.
• Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.
• Distributions from Roth IRAs.

All I want is to report "Nondeductible contributions you made to traditional IRAs" in year 2021 for tax year 2020.  Apparently this can be reported to IRS through Form 8606. So need to understand, how I should answer the questions. I have put all questions that I answered to TurboTax to obtain Form 8606 in this topic chain so that others seeking help on this topic can get answers. There are queries on this topic, but answers are vague. So Please help

I am now frustrated with TurboTax after choosing Live Advise. I am being routed to folks who don't have a Clue. A subject matter specialist and Product specialist should have a look and provide an answer. Please oblige.

[AnnetteB6]

Everything you have entered seems perfectly correct to me based on the situation you described, except for your answer to question 6.  

For question 6, you should answer 'no'.  You did not have a basis to track for prior years.  Even though you did answer 'yes' to this question, as long as you also indicated that you have no basis (which you did, based on your question) then everything is still correct.  

Your other answers are fine and the result of your entries should show that you have made a non-deductible IRA contribution for 2020.  This will be shown on Form 8606, which will be included as part of your 2020 return.  

@TheUnluckyOne