topic Form 8606 Bug in Deductions & credits

Form 8606 Bug

sswami189 — Wed, 12 Feb 2025 02:53:02 GMT

I contributed 7000$ to a traditional IRA in 2024, and it was a nondeductible contribution. However, when I go through TurboTax online's section of 'Traditional and Roth IRA Contributions' (IRA contribution information), the question "Choose Not to Deduct IRA Contributions" does NOT show up. Hence, Form 8606 is not getting generated. Please advise as soon as possible!

Thank you!

Re: Form 8606 Bug

fanfare — Wed, 12 Feb 2025 04:56:54 GMT

Since you are using Online version, you have to revisit that section of the Q&A

@sswami189

Re: Form 8606 Bug

DanaB27 — Wed, 12 Feb 2025 22:28:45 GMT

To clarify, do you get a warning that you cannot deduct your IRA contributions? Please be aware, if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you do not get the "Choose Not to Deduct IRA Contributions" screen. You only get a warning and then a screen saying $0 is deductible.

@sswami189

Re: Form 8606 Bug

sswami189 — Thu, 13 Feb 2025 02:42:26 GMT

@DanaB27 thanks so much for your reply. Yes I do have a retirement plan at work and it did show me 0$ is deductible. Basically I’m trying to generate a form 8606 for the 7k contribution to IRA made in Dec 2024, so that I can set up the basis for the Backdoor Roth conversion of that amount that I did in Jan 2025. Can I still generate that form now? Or would form 8606 for tax year 2024 (for basis) and for tax year 2025 (for conversion to Roth) be generated only when I file with TurboTax in 2026?

Re: Form 8606 Bug

DanaB27 — Thu, 13 Feb 2025 03:52:35 GMT

Yes, TurboTax will create the 2024 Form 8606 when it shows you that $0 is deductible because you have a retirement plan at work and are over the income limit. You are on the right path. You will have a 2024 Form 8606 with a basis on line 14 and this will be carried over to your 2025 return.

To check Form 8606 is included please follow the steps below. Please note you may have to pay to be able to view/print the full tax return.

Select Tax Tools on the left and then Print Center
Select Print, save or preview this year's return
Select federal return and choose to print just the tax return

Next year on your 2025 tax return:

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 and the value of all traditional, SEP, and SIMPLE IRAs

@sswami189