topic Form 8606 prior year basis in Retirement tax questions

Form 8606 prior year basis

TaxGeek100 — Sun, 23 Mar 2025 15:37:42 GMT

While filing my form 8606, TurboTax questionnaire is not asking me about my prior year non-deductible basis. How do I enter my prior year non-deductible basis in Form 8606?

Last time I made a non-deductible contribution to IRA was is 2019. I did file a 8606 at that time. In 2024, I again made a non-deductible contribution to my IRA. This IRA has deductible and non-deductible contributions. I did not take any distributions from IRA, so don't have a 1099-R.

Have sent questions to TurboTax team and have been waiting for 3+ weeks now, they just keep telling me that they are working on the bug.

Re: Form 8606 prior year basis

fanfare — Sun, 23 Mar 2025 16:03:42 GMT

If you can't find the secret door,

you can request an extension, while you wait for TurboTax to get its act together.

When you make the non-deductible election, do you not see the opportunity to correct your prior basis?

@TaxGeek100

Re: Form 8606 prior year basis

TaxGeek100 — Sun, 23 Mar 2025 17:51:42 GMT

It just shows me "Income Too High To Deduct an IRA Contribution" and then shows me a table saying how much my deductible and non-deductible IRA contributions were (deductible was $0 since I am over the income limit).

At this point, it should ask me for my prior year basis from my 2019 Form 8606 so that it can put accurate info into my 2024 Form 8606. I have not filed taxes with Turbo Tax since 2018, so it does not have my history.

Re: Form 8606 prior year basis

fanfare — Sun, 23 Mar 2025 18:46:23 GMT

One reasonable option:

1) e-File

2) get 1040-X and 2024 8606 from IRS in fillable PDF.

3) mail them to the IRS address specified for your location.

Note: when you are not changing any dollar amounts on your amending 1040-X, you can leave all the lines 1-23 EMPTY.

Part II explanation: "correcting original Form 8606 filed with TurboTax errors".

Done this way, you sign 1040-X, not 8606.

Do not include your old 1040 nor your revised 1040 because they are identical.

@TaxGeek100

Re: Form 8606 prior year basis

fanfare — Sun, 23 Mar 2025 18:52:28 GMT

OR try this.

change your earned income to $40,000 so you are eligible

enter the contibution and make the non-deductible election.

you should get the question.

Put your income back to true value.

@TaxGeek100

Re: Form 8606 prior year basis

TaxGeek100 — Sun, 23 Mar 2025 22:33:00 GMT

Wow........such a hack, but it worked!!

I do wish TurboTax fixes the issue eventually, but its very likely that they might suggest the same hack for now!