topic Form 8606 not calculating in Get your taxes done using TurboTax

Form 8606 not calculating

fazzman28 — Wed, 02 Apr 2025 19:07:13 GMT

I have a basis in traditional IRAs. This is first year I had to take a RMD distrubtion. I can't get 8606 to calc the % that should be deducted from the distrubtion received. For example: if I took $50k distrubtion, basis in my IRA is $35k, value of IRA at 12/31 is $1,000,000. 8606 should calculate 35000 / 1,000,000 = 3.5%. This means that 3.5% of the $50k is NOT taxed leaving a taxable amount to line 5b on 1040 to be 48250 (50000 * 3.5% = 1750. 50000 - 1750 = taxable amount of 48250). Basis at end of year is now 33250 (35000-1750 = 33250) . What needs to be checked/unchecked etc. to make TTX work. This is extemely frustrating for what is a SIMPLE calculation. PS: I know when I did my tax budget with last year TTX, this worked properly. PPS I also notice that form 1099-R, RMD section, question D (type of account) will NOT accept a check in IRA box. It stays RED!

Re: Form 8606 not calculating

DanaB27 — Tue, 01 Apr 2025 21:37:19 GMT

To clarify, did you enter your Form 1099-R and answer the follow-up questions about your basis and value?

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 "Here's 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 last filed Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

Re: Form 8606 not calculating

fazzman28 — Wed, 02 Apr 2025 21:16:00 GMT

Thanks. The issue was on the 1099-r page. Section 7 had the correct code of 7 a regular distribution but the box directly to the right of code 7 needed to be checked. This is why the RMD section question D was red and it didn't calculate. Took 3 help agents to finally figure this out. I said to each of them. Something is either checked or not checked causing this not to calc.