Form 8606 non deductible

[Geenie]

Hi,

I contributed non-deductible IRA in 2020 but did not specified as non-deductible then. I see form 8606 in my 2020 tax return but no basis was calculated. Is there a way I can correct this information now?  Can I correct it with Turbotax this year?  Turbotax just asked me to find the basis calculated from the past 8606 form, but since there was no info from last 8606 form, what should I do?

I made another non-deductible contribution in 2021 which I think I can add in Turbotax...

[DanaB27 · Accepted solution]

You will have to amend your 2020 tax return to create the 2020 Form 8606. Then you can enter the basis from line 14 during the 2021 interview when TurboTax asks for the basis.

To enter the nondeductible contribution to the traditional IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
9. Enter your basis in the Traditional IRA from your 2020 Form 8606 line 14 (if you had a basis in the prior year)
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

To enter the 1099-R conversion: 

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 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

[Geenie]

Thank you DanaB27 for the details!!!  Maybe because I use Turbotax CD that my search topic is more on the left on the top.