Form 8606 is a form for reporting nondeductible IRAs. One of the purposes of filing this form is to keep track on your IRA nondeductible contributions to traditional IRAs so that the taxability of your future IRA distribution will be correctly calculated based on your IRA basis ( which are the nondeductible contribution portions). In addition, you also use it to report other IRA-related transactions where the government needs to track the status of your money—whether it’s been taxed or untaxed.
· Take distributions from a Roth IRA ( especially calculate the taxable amount of a nonqualified Roth IRA distribution.)
· Take distributions from a traditional, SEP or SIMPLE IRA at any time after you have made nondeductible IRA contributions
· Convert a traditional, SEP or SIMPLE IRA into a Roth IRA
Per IRS, as this form will not be available until 2/15/2018, if it does not apply to you, simply remove it from the program.
In TurboTax online program, please follow these steps:
1. Sign into your account, select Take me to my return
2. On your left, Select Tax Tools / drop down menu
3. Select Tools
4. Under Other helpful links, choose Delete a form
5. Select Delete next to Form 8606-T / Form 8606-S and Continue with My Return to proceed
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