TT error - Blank Form associated to form 8606

[Richard67]

I am reviewing by 1040 and supporting forms via the Print center.  I see a page called "Blank Form".  It has comments on from me relating to form 8606 and a basis change BUT I did not populate this form when entering data and I know by the comments that they related to a return from 4 years ago.   I checked last year's return and the same error didn't seem to be there.   Why has this happened and more importantly how do I delete the blank form?    I do have a 8606 in this year's return that that is showing as populated correctly.

Thank you Richard

[dmertz]

This message results when TurboTax transferred in from your 2022 tax file your basis from your 2022 tax return and you subsequently entered a different number (or even overwrote the carried-in number with the same number) when preparing your 2023 tax return.

If you had no intention of modifying the amount of basis carried in, your only option to eliminate the need to provide explanation is to clear your tax return and start over.  Once you have overwritten what TurboTax carried in, even if with the same number, there is no way to make TurboTax believe that the carried-in value was not modified.  The only other option is to provide an explanation that there is no modification to explain.  (TurboTax should be able to recognize that the value has been returned to the carried-in value, but doesn't.)

[Richard67]

@dmertz   I have a couple of follow up questions, but firstly thank you for your very clear/concise answer.    Reading between the lines, are you saying when the blank form is generated for the reasons you explain,  TT does NOT allow one to edit the response on the blank form, even though my comments on that blank form relate to a return I filed 4 years ago (to be clear I input no comments this year as the option wasn't there, as far as I could tell)?      Relatedly/secondly you suggested maybe I add an explanation with my return telling IRS to disregard the comments on the blank form.  How would I do that, given TT isn't giving me an option to edit my 4 year old comments?   Thank you again!  Richard

[dmertz]

Because TurboTax believes that you have modified your preciously reported basis, TurboTax won't allow you to delete the explanation statement or the Form 8606.  Including the Form 8606 that simply has on line 2 the amount from line 14 of your Form 8606 from 4 years ago and no actual reason to be filing the form won't cause any problems, but not being able to delete the explanation statement means that you'll need to put in some explanation as to why the explanation statement is present.  If TurboTax is prompting you to provide an explanation of the change (actually a non-change) to your basis, TurboTax is asking you to enter some text.

The purpose for allowing a change is to accommodate situations where your basis changes due to something like inheriting basis from a deceased spouse, receiving basis with a transfer of an IRA incident to divorce, or rolling over to a traditional IRA after-tax basis from the traditional account in an employer plan.  (I don't recall any other circumstances that would require an adjustment to your basis.)

[Richard67]

@dmertz   Thank you for your follow up.  I managed to chat with some one at TT and I just deleted the blank form under the tax tools section.  I didn't know one could do that.  The change seems to have stuck, but I will check again just before I file.  I

I still find it odd though,  I understand why the "blank" form was triggered (based on your explanation) but at no time was I given the option to update or amend my 4 year old comments that were automatically populated into that so called "blank" form.    If I hadn't generated a print view I would not have even know the form was there.  So if there is a use case that explain why this happens, I don't know why TT would at least prompt one to review the comments it automatically populated based on an old return.

[dmertz · Accepted solution]

The prompt for explanation would occur as one progresses through the section for entering traditional IRA contributions.

I guess that since no traditional IRA distributions and no 2023 nondeductible traditional IRA contributions were involved, it was possible to simply delete the Form 8606.  You'll still want to check to see that TurboTax's IRA Information Worksheet shows the correct basis carried in from 2022 and that the same amount is shown as your 2023 basis to be carried forward to 2024.

[Richard67]

@dmertz   That's my point.  There was no prompt when I entered the information that populates 8606. The system simply generated the "blank" form without making me aware.    I was able to delete the "blank form" (that was appearing as the very last page of the entire return - including all forms) without deleting 8606.  I need to include 8606.  Thanks again for all your help.