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Level 2
posted Mar 3, 2021 12:11:29 PM

Why does my Form 8606 Line 15a have a value when both Line 7 and Line 12 are blank?

This was a backdoor Roth contribution, so the Taxable Amount in Line 15c should be $0. The correct amount is entered into 1040 Line 4b, so this did not influence my tax calculation, but the 8606 appears incorrect.

0 3 460
3 Replies
Level 15
Mar 3, 2021 12:19:03 PM

If there is a * next to line 15, the calculations were done on the "Taxable IRA deduction worksheet" per worksheet 1-1 in IRS Pub 590-A and not on the 8606.

 

https://www.irs.gov/publications/p590a#en_US_2019_publink100025076

 

That worksheet is used when there is a contribution and distribution in the same tax year.

Level 2
Mar 3, 2021 12:29:39 PM

Thank you. It does have the star and references Pub 590-B. The calculation seems incorrect, as my Traditional IRAs finish every year with a $0 balance. It seems strange that this amount does not make it to any lines of income in my 1040, and I have never had this issue in previous years.

Level 15
Mar 3, 2021 12:46:58 PM

The 8606 line 15b should be on the1-4- line 4b.

 

Sounds like your entries are incorrect.   Your 2020 non-deductible contribution must be on the 8606 line 1, any 2019 or earlier non-deductible contributions on line 2 - the total on line 3.

 

If your IRA 2020 year end value was zero then  the deduction worksheet line 4 should be zero.