Form 8606 Bug

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

 

@sswami189 

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 

@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? 

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.

 

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

 

 

 

Next year on your 2025 tax return:

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. 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”
5. On the "Review your 1099-R info" screen click "Continue"
6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. 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