How can I enter the 2019 value of my IRA on Form 8606?

[psanand]

I have been trying for past 3-4 days, multiple times opened my 2019 Tax returns to go over the non-deductible IRA contribution and update to create form 8606 but TurboTax is not allowing. I am not seeing the part you have mentioned below:
"You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2019."

After hitting continue on 1099-R it just jump to completely other section. Very frustrating.

[macuser_22]

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@psanand wrote:

I have been trying for past 3-4 days, multiple times opened my 2019 Tax returns to go over the non-deductible IRA contribution and update to create form 8606 but TurboTax is not allowing. I am not seeing the part you have mentioned below:
"You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2019."

After hitting continue on 1099-R it just jump to completely other section. Very frustrating.

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What code is on box 7?  Is the IRA/SEP/SIMPLE box checked?

Only IRA's get that question and it comes after the 1099-R summary screen in the 2nd half of the interview.

[psanand]

@macuser_22 

Thank you first of all for offering your help!

Here is the situation:

2019 was the first year I did backdoor Roth conversion in 2020 prior to April 15th 2020.

1) IRA had .01 cents as of 12/31/2019
2) Contribution $7000 made to IRA on 1/27/2020 for year 2019 from after Tax money 
3) Roth conversion on 3/2/2021 for full $7,000.
4) 1099-R-2020 - box 1 7K, box2a 7K, 2b-Taxable Amt Not determined, box7 code=7 IRA/SEP/SIMPLE box checked
I didn't report the deposit made to IRA in 2019 TurboTax as I don't see a 8606 for 2019 b/c TT2019 didn't present those questions.

Q1 - How can I update 2019 Tax Return to create 8606 for 2019 and then send that to IRS?

Q2 - I did the same in 2021 for year 2020 and am hoping that once I correct my 2019 tax return then it should fix the issue I am having with my 2020 return.

Your help is much appreciated.

[psanand]

My 2020 1099-R has:
box 1 7K, box2a 7K, 2b-Taxable Amt Not determined, box7 code=7 IRA/SEP/SIMPLE box checked

[dmertz]

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@psanand wrote:

I didn't report the deposit made to IRA in 2019 TurboTax

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That's the problem.  In 2019 TurboTax you are required to have reported your contribution for 2019 made in 2020.  Doing so will result in TurboTax generating Form 8606 if that contribution was nondeductible.  The amount on line 14 of that Form 8606 will transfer to line 2 of your 2020 Form 8606.

[catlvr]

Last year I had a similar problem with form 8606.   I spent many hours trying to figure out how to enter the data on the 8606.   I wound up having to print out the return and white out the entry that Turbo Tax would not let me enter.  I then had to go through the rest of the forms and white out everything that was affected by the change I made on the 8606.  After that I made copies of the whole thing and mailed it in.  You obviously can't file electronically when you do stuff like that.

It seems like Turbo Tax would have this figured out.  I have not done my 2020 taxes yet.  I hope they have fixed it.

I have heard that if you get Turbo Tax on a  disc rather than do your taxes on line that you can make all the entries on your 8606.  I hope this is true because that is what I am trying this year.

Good luck!

John H.

[macuser_22]

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@catlvr wrote:

Last year I had a similar problem with form 8606.   I spent many hours trying to figure out how to enter the data on the 8606.   I wound up having to print out the return and white out the entry that Turbo Tax would not let me enter.  I then had to go through the rest of the forms and white out everything that was affected by the change I made on the 8606.  After that I made copies of the whole thing and mailed it in.  You obviously can't file electronically when you do stuff like that.

It seems like Turbo Tax would have this figured out.  I have not done my 2020 taxes yet.  I hope they have fixed it.

I have heard that if you get Turbo Tax on a  disc rather than do your taxes on line that you can make all the entries on your 8606.  I hope this is true because that is what I am trying this year.

Good luck!

John H.

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There is no problem entering the year end value in TurboTax. 

It has worked fine for many years.

After entering any new 2020 contributions in the IRA contribution section.

Enter the 1099-R - When asks if you have made non-deductible contributions answer yes, enter the last 8606 box 14 value of any, and the next screen will ask for the year end value.

[Donnawang]

I follow the instruction to search for "8606, nondeductible ira contributions" in the Turbo tax software, however, it doesn't show a link to the form. Could you help with it?

[macuser_22]

You don't normally enter a 8606 itself. It is automatically created when:

1) You make a new non-deductible Traditional IRA contribution.
2) You take a distribution from a IRA that has a after-tax "basis".
3) You make a conversion of a retirement account to a Roth IRA

If none of those occurred, then the last filed 8606 remains in effect

There are some circumstances when a 8606 must be files for other reasons and might require filing a stand-alone 8606 that must be downloaded from the IRS site and filled out by hand and attached to a mailed tax return.

https://ttlc.intuit.com/questions/1899503-what-is-form-8606-nondeductible-iras-used-for

[psanand]

I have tried multiple times opened my 2019 tax file using TT2019 premier but it does allow me to "jump to" options and also it does not even take me to section where I can enter non-deductible IRA contribution for 2019 (deposit and roth conversion done in 2020).

I am hoping someone can help both of us by providing clear instructions that actually works.

[macuser_22]

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

[psanand]

Hello MacUser_22,

Thank you for all your help!

I have tried the steps you have described below with amending my 2019 Tax return to account for Jan 2020 IRA contribution 7K and then Conversion to Roth IRA in March 2020. However, it keeps showing the message "Income too High to Deduct IRA" but I don't need to take a deduction.

I realized that I had some typos in my first post, so I am providing the info again below:

Here is the situation:
1) IRA has .01 cents as of 12/31/2019
2) Contribution made to IRA on 1/27/2020 for year 2019 with after Tax money
3) Roth conversion on 3/2/2021 all 7K
4) 1099-R for 2020 - box 1 7K, box2a 7K, 2b-Taxable Amt Not determined, box7 code=7 IRA/SEP/SIMPLE box checked
I didn't report the non-deductible deposit made to IRA in 2019 TurboTax as I don't see a 8606 for 2019 tax return.

Q1 -Do I need to amend 2019 tax return to get the basis corrected for use in 2020 tax return?
Q2 - If Yes, please, please provide detailed steps, how can I go back and update/Amend my 2019 Tax Return
Q3 - Once I get that corrected and see form 8606 generated for 2019 tx return, do I need to file full amended tx return or I can just file form 8606 only (with 1040-X as I saw someone suggested that)?

I am hoping this will correct my 2020 tax return situation, where I am getting this 7K considered as IRA distribution and making it a taxable amount.

Your help is much appreciated.

[macuser_22]

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@psanand wrote:

Q1 -Do I need to amend 2019 tax return to get the basis corrected for use in 2020 tax return?
Q2 - If Yes, please, please provide detailed steps, how can I go back and update/Amend my 2019 Tax Return
Q3 - Once I get that corrected and see form 8606 generated for 2019 tx return, do I need to file full amended tx return or I can just file form 8606 only (with 1040-X as I saw someone suggested that)?

I am hoping this will correct my 2020 tax return situation, where I am getting this 7K considered as IRA distribution and making it a taxable amount.

Your help is much appreciated.

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Yes.  On a 2019 return it is entered this way.

The "Choose not to deduct" will  not appear if your AGI is too high for deduction.

[psanand]

Hi MacUser_22 - Again thank you for helping me!

There is one difference from what you showed on second screenshot "Tell us How much of the above total you contributed between Jan 1, 2020 & April 15, 2020" and that amount I am entering as 7,000. I.e. both boxes on this page I enter 7,000, because I deposited 7K into IRA on 1/27/2020 & converted to Roth on 3/2/2020, all this is for the Tax year 2019.

IRA bal was .01 as of 12/31/2019.

Also, would appreciate it if you could share the full page 1 of 8606 how it should look. b/c I have question on line 8, should I report 7,000 on line 8 or not?