Both my husband and I have made non-deductible contributions to IRAs in the past. When I was originally processing our information, I filled out the information for both of us, and created an 8606-T and 8606-S. I am getting ready to file but noticed our refund had decreased by about $100. I discovered the 8606-S has disappeared. So I went to add the data back, and discovered that although TurboTax step-by-step poses the following question for my husband, this screen does not appear for me.
Let us know if <spouse name> made and kept track of any nondeductible contributions to <her> traditional IRA from 2019 or prior years (this is not common).
What can I do to generate the correct 8606 for myself?
You may need to enter Forms mode in order to create the second 8606.
Here's how to switch to forms mode for Windows
Here's how to switch to forms mode for Mac
If this does not work then we suggest deleting the 8606 forms and starting again (not in Forms mode).
How do I view and delete forms in TurboTax Online?
- Open or continue your return in TurboTax.
- In the left menu, select Tax Tools and then Tools.
- In the pop-up window Tool Center, choose Delete a form.
- Select Delete next to the form/schedule/worksheet in the list and follow the instructions.
The answer seemed to be that the taxable IRA withdrawal for me (spouse) was from an Inherited IRA. For my husband (taxpayer), the taxable IRA withdrawal was an ordinary distribution. I finally figured it out by switching the box 7 code from 4 (death) to 7 (Normal distribution). It was the only difference I could determine about our 1099-Rs. So apparently even though the IRS considers the withdrawal from and Inherited IRA to be taxable to me, it doesn't consider the asset value of the Inherited IRA to be part of my basis, and thus Turbotax decided there was no reason to create an 8606-S. I hope Turbotax might add some verbiage to explain this nuance someday, as I spent hours and hours trying to figure it out.
Anyway, my problem is resolved.