Fed. tax form 8606

[twinfoseaker]

I have a non-deductible IRA in which every year I made manual calculations using Form 8606 to determine the amount that is taxable and non-taxable for my Federal taxes until a couple a years ago when I started using TurboTax premier. I also have the Federal Thrift Savings account (that’s treated as an IRA) but its distributions are all taxable. In Turbotax 2019 , I had the problem that TurboTax premier wanted to combine my distributions from my non-deductible IRA with the my fully taxable Federal Thrift Savings distribution which is all taxable. Nothing I could change in reporting these two distributions into TurboTax would stop the combination. Was this a bug in the 2019 TB tax or does it not make a difference in the final input of the total corrected taxable amount.

Ted

[ThomasM125 · Accepted solution]

The taxability of your IRA distributions in TurboTax is determined by the codes listed on your form 1099-R and the answers to questions you see after you enter your form 1099-R in TurboTax. One of the questions you will see is Any Nondeductible Contributions to Your IRA? When you answer "yes" to that question, you will be able to input information that will determine the taxable portion, if any, of your distribution from your IRA that had non-deductible contributions.

So there is not a "Bug" in the program as it relates to the taxation of non-deductible IRA distributions.

[twinfoseaker]

I think I understand the problem  now after restudying it a little closer and seeing what and how IRS wants the data entered. It was not that clear right off the top. Thanks. Ted