Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Feb 20, 2022 9:00:06 PM

Failure to enter value of Traditional IRA on Dec. 31, 2021 was not detected, resulting in miscalculation of tax owed.

My failure to enter the value of my traditional IRA on December 31, 2021 was not detected by the TT Federal Review.  As a result, there was no entry on form 8606 Line 6 and a gross miscalculation of the taxable amount of my distributions.

 

I didn't see any reason why a blank on 8606 Line 6 would ever be valid. It looks like a TT bug to me. Is this the case?

0 3 738
1 Best answer
Level 15
Feb 21, 2022 4:27:37 AM

If you closed out your IRA, Line 6 would be zero, so that is an allowed value.

---

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend if a TurboTax update changes your return or for any other reason,
SUCH AS,  your form 8606 was incomplete


AND, to find your AGI next year.

3 Replies
Level 15
Feb 21, 2022 4:27:37 AM

If you closed out your IRA, Line 6 would be zero, so that is an allowed value.

---

Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, or to amend if a TurboTax update changes your return or for any other reason,
SUCH AS,  your form 8606 was incomplete


AND, to find your AGI next year.

Level 15
Feb 21, 2022 4:33:51 AM

This concern has been made to those at TurboTax Product Quality many times in the past and they've elected to ignore it.  They consider it to be user error when a failure to enter the year-end value results in a miscalculation on Form 8606. 

Level 2
Feb 21, 2022 7:19:26 PM

Thanks for the timely and informative answers.  While I found my error with my usual manual checks, I was miffed that TT didn't tell me first.  I expect that valid missing values would be very rare in this case.