Form 8606

[Turkey3]

Hi - my husband and I filed MFS this year. When he filled out his taxes, TT brought up a screen to enter the basis for IRA on form 8606. However, going through the same section, TT never prompted to enter my basis and it shows as 0 when reviewing the return prior to filing. Anyone else have this error and figure out a fix? Thanks. 

[DanaB27]

You can either enter the prior basis in the retirement section after you enter From 1099-R or in the IRA contribution section.

In the IRA contribution section:

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 2023 Form 8606 line 14 (or last filed Form 8606)

In the retirement section:

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Make sure the IRA/SEP/SIMPLE box is checked on your entered Form 1099-R
4. On the "Review your 1099-R info" screen click "Continue"
5. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
6. Answer the questions about the basis from line 14 of your 2023 Form 8606 (or last filed Form 8606).

Please see Who Must File File 2024 Form 8606 for details.

[Turkey3]

Thanks for the quick reply! The problem I am having is with #8. The screen asking “any non deductible contributions to your IRA?” never appears in the line of questions. L I also do not have a 1099-R for this account this year so the second method won’t work as far as I can tell. Thanks!

[DanaB27]

There was an issue with this question missing but it has been fixed. Are you using TurboTax Desktop or TurboTax Online? 

If you are using TurboTax Desktop please make sure your software is updated. Please see Manually Update TurboTax for Windows Software.

If you are using TurboTax Online try to clear your cache and delete your cookies before login back in and returning to the IRA contribution section.

If this doesn't help then it would be helpful to have a TurboTax ".tax2024" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

The instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number and add @DanaB27 . This will allow us to open a copy of your return without seeing any personal information.  

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

[Turkey3]

I tried clearing cache and cookies, but no change. @DanaB27 Token 1277378. Thanks!

[DanaB27]

Thank you. To clarify, I do not see a traditional IRA contribution entered? If you did not make a traditional IRA contribution for 2024 or took distribution in 2024 then you are not required to file Form 8606. Please see Who Must File 2024 Form 8606.

I can see that when I add a traditional IRA contribution then the prior basis screen does not come up. This should have been automatically updated in TurboTax Online. I'm not sure why it didn't update for you. You might have to delete your return and start over. Please see How do I clear and start over?

Another option: I was able to trigger the question by add a Form 1099-R to get to the prior year basis question and then delete Form 1099-R again.

1. Click on the "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Answer "Yes" to "Did you get a 1099-R in 2024?"
4. Select "I'll type it in myself"
5. Box 1 enter $10
6. Box 2a $10
7. Box 7 enter 1
8. Check the "IRA/ SEP/ SIMPLE" box
9. Continue
10. On the "Review your 1099-R info" screen click "Continue"
11. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
12. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs
13. Go back to the "Review your 1099-R info" screen and delete the Form 1099-R

Please see What's the TurboTax phone number? if you need further assistance.

[andrew929]

Hi Dana,

Thanks for your explanation here. 

For item #12, year 2024 was my first year contributing nondeductible tradition IRA, for example if I contributed $1000, what is the basis should be input here?

Thanks

[DanaB27]

If 2024 was your first nondeductible contribution then you will enter $0 for the basis from prior years. 

Your nondeductible contribution for 2024 will be entered in the IRA contribution interview under Deductions & Credits.

@andrew929