topic Line 20 of Form 8606 not being populated. in Retirement tax questions

Line 20 of Form 8606 not being populated.

QRFMTOA — Thu, 03 Feb 2022 18:18:14 GMT

In 2020, I liquidated my Roth IRA of $12,000 in an early distribution at the age of 56 which I owned for more than five years. (I have not yet filed my tax return for 2020.)

$10,000 was used to purchase a first home and $2000 was used to pay medical bills. (I was in complete compliance with requirements for the first-time homebuyer exception.)

When I entered my 1099-R data, I found Line 20 of Form 8606 was not populated with the $10,000.

I seem to remember reading about other people having similar problems.

Does anyone have any suggestions on how I can fix this issue?

Thanks!

JWKinCVA

Re: Line 20 of Form 8606 not being populated.

dmertz — Thu, 03 Feb 2022 18:44:03 GMT

This is a bug in TurboTax introduced in the first release of 2020 TurboTax and still exists in 2021 TurboTax. The only way to get around this bug to properly populate line 20 is to override line 20 in forms mode of the CD/download version of TurboTax which will prevent you from e-filing.

Re: Line 20 of Form 8606 not being populated.

fanfare — Thu, 03 Feb 2022 18:51:26 GMT

The other way around is to use a different tax software provider that will prepare a correct 8606 and e-File it.

Re: Line 20 of Form 8606 not being populated.

QRFMTOA — Thu, 03 Feb 2022 20:06:12 GMT

@dmertz @fanfare

Thanks!

JWKinCVA

Re: Line 20 of Form 8606 not being populated.

QRFMTOA — Thu, 03 Feb 2022 20:25:28 GMT

Does it also exist in the online version?

Re: Line 20 of Form 8606 not being populated.

QRFMTOA — Thu, 03 Feb 2022 20:35:31 GMT

@fanfare @dmertz

It appears TurboTax has a workaround at...

https://ttlc.intuit.com/community/accessing/help/where-do-i-find-form-8606/00/25713

Re: Line 20 of Form 8606 not being populated.

dmertz — Thu, 03 Feb 2022 21:16:04 GMT

I don't see how you can do the entry with the online version since the entry can't be made on line 20 without using an override. The online version does not permit overrides. (The online version uses the same underlying calculation engine as does the CD/download version. Only the step-by-step mode interface is different and only in some areas.)

The TurboTax help that suggests preparing Form 8606 manually does not really work since the result of a manually prepared Form 8606 will not be propagated to Form 1040. You would have to manually prepare your entire tax return, so what would be the point of using TurboTax at all. Using the override in forms mode of the CD/download version does propagate the result to Form 1040.

Re: Line 20 of Form 8606 not being populated.

QRFMTOA — Thu, 03 Feb 2022 21:22:28 GMT

@dmertz

You and I are on the same page!

I just posted a "Product" question to TurboTax...

I have tried the workaround at https://ttlc.intuit.com/community/accessing/help/where-do-i-find-form-8606/00/25713 and it does not seem to work.

Even if it did work, I would not be convinced that 2020 TurboTax Deluxe Desktop would be properly filling out form 8606, form 5329, and form 1040.

Does 2020 TurboTax Online have the same Form 8606 bug?

Thanks for confirming that the online version is just as buggy as the desktop version.

Thanks, again!

JWKinCVA

Re: Line 20 of Form 8606 not being populated.

QRFMTOA — Thu, 03 Feb 2022 21:26:34 GMT

@dmertz

Can you PM me with any TurboTax alternatives?

Thanks!

JWKinCVA