topic Reconstruct cost basis in form 8606 in Get your taxes done using TurboTax

Reconstruct cost basis in form 8606

CSMaya — Tue, 10 Feb 2026 09:17:09 GMT

This year I realized that the cost basis in form 8606 is incorrect. I had file form 8606 since 2003 but lost the earlier 7 years of them. During a several years I used an accountant and completely mess up the cost basis reporting the end the year value of the traditional IRA account instead of the accumulated non-deductible contributions. Afterwards I used TurboTax, but the software did not ask the question and did not carry over the following contributions. I made the mistake of not educated myself in this subject.

My questions are:

1) Do I have to send the correct 8606 form for every year since 2003 or just need to correct form for the last 3 years?

2) If I need to reconstruct the cost basis, can I request the IRS for the return transcripts of those early years (2003 to 2009)?

Thanks

Re: Reconstruct cost basis in form 8606

ThomasM125 — Tue, 30 Jan 2024 21:28:20 GMT

It is not likely the IRS would deny a basis deduction for non-deductible IRA contributions simply because you didn't report it on a form 8606. It is as much for your benefit in keeping track of your basis as it is for the IRS's record keeping. The important thing is that you have documentation proving the amount of your non-deductible contributions. You can get copies of tax returns going back seven years from the IRS, but one would think it would be sufficient to just amend the last three years if you are concerned about it.

Re: Reconstruct cost basis in form 8606

BTRIV — Sat, 09 Mar 2024 22:40:06 GMT

Can TurboTax be used to track cost basis on Form 8606 (Line2)? I can't figure out how to include anything other than the current year nondeductible contribution that populates Lines 1, 3, and 14.

Re: Reconstruct cost basis in form 8606

DanaB27 — Sun, 10 Mar 2024 17:28:07 GMT

Yes, you can enter your basis from your last filed Form 8606 line 14 during the interview and then TurboTax will enter it on line 2 of Form 8606. You can either enter it in the IRA contribution section or in the retirement section.

To enter it in the IRA contribution section:

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “traditional IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution?”
Enter the amount you contributed
Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” since you had a nondeductible contribution before this tax year.
Enter your basis in the Traditional IRA from your 2022 Form 8606 line 14

To enter it in the retirement section when you have a Form 1099-R with the IRA/SEP/SIMPLE box checked:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
On the "Review your 1099-R info" screen click "Continue" after all Form 1099-R are entered
Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

Please see Who Must File Form 8606 for additional information.

@BTRIV