topic TurboTax isn't allowing me to file Form 8606 in Get your taxes done using TurboTax

TurboTax isn't allowing me to file Form 8606

mrpink_ — Wed, 05 Feb 2025 23:18:49 GMT

Hi there, here's what I'm dealing with:

- I make $176k (over the max for a normal Roth IRA)
- I contributed $7,000 to my backdoor Roth IRA in January 2025 for the 2024 tax year

- I was told by Vanguard that I won't be receiving a 1099-R, and instead I will need to file Form 8606

- TurboTax is not giving me the option to file Form 8606. It's saying my MAGI is too high.

Here are the exact steps I'm taking on TurboTax Online:
- Start the "Traditional and Roth IRA" section (under "Deductions and Credits")
- Select "Traditional IRA"
- Answer "No" to "Is This a Repayment of a Retirement Distribution?"
- Enter "7,000" in both fields for "Tell Us How Much You Contributed".
- Answer "No" to "Did You Change Your Mind?"
- Answer "No" to "Any Excess IRA Contributions Before 2024?"
- Enter "0" for "Let's Find Your IRA Basis"
- I get presented with the screen saying "Income Too High To Deduct an IRA Contribution"

How can I successfully file Form 8606? Or am I misunderstanding something?

Re: TurboTax isn't allowing me to file Form 8606

DanaB27 — Wed, 05 Feb 2025 23:49:54 GMT

For a backdoor Roth you want the traditional IRA contribution to be nondeductible this gives you the basis. Therefore the screen saying "Income Too High To Deduct an IRA Contribution" is fine. After this you should get a screen saying $0 of your IRA deduction are deductible and TurboTax will create Form 8606 for you.

To enter the nondeductible contribution to the traditional IRA (on your 2024 return):

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” if you had a nondeductible contribution before this tax year.
Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

Next year on your 2025 return follow the steps below to enter the Form 1099-R for the conversion you made in 2025:

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
Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
On the "Review your 1099-R info" screen click "Continue"
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 2024 Form 8606 ($7,000) and the value of all traditional, SEP, and SIMPLE IRAs

Re: TurboTax isn't allowing me to file Form 8606

mrpink_ — Thu, 06 Feb 2025 00:25:07 GMT

It's true, I do get the screen saying my IRA deduction is $0.

However, I never get presented with the screens saying "Any Nondeductible Contributions to Your IRA?"or"Choose Not to Deduct IRA Contributions".

I guess ultimately what I'm expecting is my refund to go up if I'm doing this properly. Let's call this "extra money".

To test this, I tried removing this IRA section completely, checking my refund, and then re-adding it, and checking my refund again. The number for my refund is the exact same both ways. Does that sound correct?

You mentioned I'll need to report this on my taxes next year via a 1099-R. Is the implication that I wont receive the "extra money" until next year?

Re: TurboTax isn't allowing me to file Form 8606

DanaB27 — Thu, 06 Feb 2025 12:14:28 GMT

Yes, as mentioned in step 10 entering the IRA contribution, if you have a retirement plan at work and are over the income limit it will be nondeductible automatically. You will not get the “Choose Not to Deduct IRA Contributions” screen but get a warning "Income Too High To Deduct an IRA Contribution" and then a screen saying $0 is deductible.

Yes, that sounds correct. Since the contribution is nondeductible it won't reduce your income and therefore change your refund.

Yes, you converted the amount in 2025, therefore the conversion must be reported on your 2025 tax return.

Re: TurboTax isn't allowing me to file Form 8606

ThaiHDo — Tue, 25 Mar 2025 16:25:57 GMT

I am encountering the same issue as the original author. I did not receive the question “Any Nondeductible Contributions to Your IRA?” and similarly it says "Your IRA Deduction is $0."

How do I submit form 8606 if the program does not generate it?

Re: TurboTax isn't allowing me to file Form 8606

ThaiHDo — Tue, 25 Mar 2025 17:20:27 GMT

https://youtu.be/2ySe52-UaQI?si=-Ka09GCqX-ZGDiHQ

check out this youtube video. I had a similar issues and this helped me resolved it. good luck