Turbotax failed to generate form 8606 at tax filing time in 2016

[GLynch]

I opened a Traditional IRA Savings account with $7k of after-tax money to reduce my 2020 taxable income by that amount. All IRA contributions must be reported. That $7k gets reported on line 2 of form 8606 as Basis in the IRA and is a Deductible contribution. Line 1 for non-deductible contributions is "0". The headline of the form says "Non-Deductible IRAs" but that is misleading because my Deductible contribution gets reported on the form too. There is no other form to report it. Since TurboTax didn't generate the form because the the contribution was treated as a deduction I will send the form 8606 (with $7k deductible contribution on line 2) myself.

[heatherado]

Is that $7k really post-tax money if you used it to reduce your taxable income? That's what it means to take it as a deduction, you deduct that amount from your taxable income, and that lowers your overall taxes. Some people don't qualify to reduce their taxable income with IRA investments, and yet they put money into them anyway. Funds that did not lower your taxable income are the ones that go on form 8606 and add to your IRA basis. There's a reason Turbo Tax did not generate form 8606 for you, you deducted those funds and lowered your taxable income, they are no longer non-deductible funds when you do that.