Turbo tax is not generating Form 8606 - it says it will do so automatically but it's not happening. Why not? We have filled in everything correctly and need the form.

[DanaB27]

To clarify, can you please provide more information for what you are generating Form 8606? 

Did you enter a nondeductible traditional IRA contribution?

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 contributions before this tax year.
9. If you had a basis in the Traditional IRA before then enter the amount.
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

Or a conversion from a traditional IRA to Roth IRA?

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Click "Continue" and enter the information from your 1099-R
5. 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”
6. On the "Your 1099-R Entries" screen click "continue"
7. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
8. Answer the questions about the basis

Or a Roth IRA distribution? Make sure you answer all follow-up questions after your enter the 1099-R.

[Stinson957C]

Following the instructions to this reply will generate a form 8606 ONLY IF the taxpayer had non-deductible contributions in the current tax year. I have non-deductible contributions from prior tax years, but the form 8606 won't generate without any current year contributions. I presume this is a software problem. Any idea how to get Intuit to fix these. I have spent up to an hour on the phone on three separate occasions without getting anywhere. Thank you.

[fanfare]

TurboTax behavior is correct because you had no activity regarding your basis.

Keep a copy of the last form 8606 you filed for your records.

IRS wants you to maintain all such forms forever, or until all your IRAs are closed out.

[parkersykes]

When using the normal guided turbotax approach it requires you to select the guide question that ask you if you made IRA contributions, even though you may not have done so this year.  Once you get through a couple of no answers you are asked if you made nondeductible contributions in prior years.  If you have been with turbo tax a while it might find a cost basis from prior years.  If not you may have to find this from a prior 8606 you had included in a prior year.  As you know, it was painful the very first time you created a form 8606.  You need to get turbotax to trigger a worksheet so you can enter the total yearend value of your IRA account(s).  It then will calculate the fractional multiplier used to reduce this years IRA withdrawal taxable distributions (like RMD withdrawals for example).  You will reduce this year's taxes a bit and have a new cost basis value ready for next year's return.  Don't be surprised if it is a small reduction in taxes owed.

[sandeeptt]

Same behavior for me this year as well. Were you able to resolve the issue?

[sandeeptt]

I am facing a similar issue. I made non-deductible contributions in earlier years and have filed 8606 every year. I did not make any contribution this year but still should file the 8606 to track the basis. I put in all the information required to trigger the 8606 but can confirm that the form was not generated when I reviewed the PDF. Can anyone help here please?

[Robert613]

I'm in the same boat for the 2023 tax year. The last time TurboTax gave me a Form 8606 was the 2021 tax year. I can see my basis on the worksheet, but no form. I did not make IRA contributions the last two years, but I sure would like to keep the forms current. Even if it's not a requirement to file the form if there hasn't been a change, it would be nice for one's records, instead of saving a copy of previous years.

[Robert613]

"Following the instructions to this reply will generate a form 8606 ONLY IF the taxpayer had non-deductible contributions in the current tax year. I have non-deductible contributions from prior tax years, but the form 8606 won't generate without any current year contributions. I presume this is a software problem. Any idea how to get Intuit to fix these. I have spent up to an hour on the phone on three separate occasions without getting anywhere. Thank you."

I guess Turbo tax wants us to put a dollar in our IRA's so we can get a Form 8606. LOL

[dmertz · Accepted solution]

If there is no 2023 transaction that is required to be reported on Form 8606, TurboTax properly omits Form 8606 as instructed by the IRS.

With no reportable transactions for the current year, your last filed Form 8606 is your current Form 8606.  The IRS instructs you to keep in your records all Forms 8606 that you have ever filed.