TurboTax said I was missing a form when I tried to file & when I logged in a few days later the error was gone so I filed. Now TurboTax says I have an 8606-T available!

[Critter-3]

The only reason for the 8606 is to report basis ... if you have none the 8606 is not needed.  

[RC519]

Well that sounds great, especially from you because you seemed adamant that I needed to re-file. I now suspect that TT may default to including one because they don't know if one has a basis from prior years. The only outstanding worry I have is reason #3 for when an 8606 is required .. says Roth conversions and nothing about if you have a basis. Any more thoughts ? 

Appreciate the input 

BTW anyone know how to stifle the badging emails ?

[macuser_22]

---

@RC519 wrote:

Well that sounds great, especially from you because you seemed adamant that I needed to re-file. I now suspect that TT may default to including one because they don't know if one has a basis from prior years. The only outstanding worry I have is reason #3 for when an 8606 is required .. says Roth conversions and nothing about if you have a basis. Any more thoughts ? 

Appreciate the input 

BTW anyone know how to stifle the badging emails ?

---

Basis is *one* of the reasons to file a 8606.   *ALL* Roth *conversions* are reported on a 8606 - basis or not.

You don't normally enter a 8606 itself. It is automatically created when:

1) You make a new non-deductible Traditional IRA contribution.
2) You take a distribution from a IRA that has a after-tax "basis".
3) You make a conversion of a retirement account to a Roth IRA
4) You have distribution from Roth IRA.


[For more information:
See IRS 8606 instructions
https://www.irs.gov/pub/irs-pdf/i8606.pdf
"Who must file" page 1.]

[quote from IRS instructions]
Who Must File
File Form 8606 if any of the following
apply.
• You made nondeductible
contributions to a traditional IRA for
2020, including a repayment of a
qualified disaster or reservist
distribution.
• You received distributions from a
traditional, SEP, or SIMPLE IRA in 2020
and your basis in these IRAs is more
than zero. For this purpose, a
distribution doesn’t include a distribution
that is rolled over (other than a
repayment of a qualified disaster
distribution (see 2020 Forms 8915-C,
8915-D, and 8915-E)), qualified
charitable distribution, one-time
distribution to fund an HSA, conversion,
recharacterization, or return of certain
contributions.
• You or your spouse transferred all or
part of their traditional, SEP, or SIMPLE
IRA in 2020 to the other spouse under a
divorce or separation agreement where

the transfer resulted in a change in the
basis of the IRA of either spouse.
• You converted an amount from a
traditional, SEP, or SIMPLE IRA to a
Roth IRA in 2020.
• You received distributions from a
Roth IRA in 2020 (other than a rollover,
recharacterization, or return of certain
contributions—see the instructions for
Part III, later).
• You received a distribution from an
inherited traditional, SEP, or SIMPLE
IRA that has a basis, or you received a
distribution from an inherited Roth IRA
that wasn’t a qualified distribution. You
may need to file more than one Form
8606. See IRA with basis under What if
You Inherit an IRA? in Pub. 590-B for
more information.

[RC519]

So what action do you suggest .. file a 1040-x and submit 8606, send in a 8606 alone, wait to hear from IRS ? It seems to me to be a technicality at this point, nothing to be gained by either party except punish me for not "complying" and get their $50 (my penalty). I'm leaning toward the wait and see.  

[fanfare]

what we've ( @Critter-3  and myself) been trying to say is:

There is nothing for you to do !

[RC519]

Thanks to you both. 

[RC519]

So my missing 8606 is really not a problem because I have no basis. My 1040-sr line 4a is blank but should be same as 4b since I converted the entire distribution.

Moving fwd, TT generated forms .. 1)1099-r additional distr info which had no check in B5 to indicate entire distr was converted.  [BTW- once I did check (form mode) 8606 was added, 1040 4a,4b agree]

2) IRA additional info W/S .. did not include 2020 conversion until checking aforementioned B5.

When I start my 2021 return, how can I ensure TT starts with my modified 2020 file vs what I filed ? 

Appreciate that insight, thanks.

[macuser_22]

---

@RC519 wrote:

So my missing 8606 is really not a problem because I have no basis. My 1040-sr line 4a is blank but should be same as 4b since I converted the entire distribution.

Moving fwd, TT generated forms .. 1)1099-r additional distr info which had no check in B5 to indicate entire distr was converted.  [BTW- once I did check (form mode) 8606 was added, 1040 4a,4b agree]

2) IRA additional info W/S .. did not include 2020 conversion until checking aforementioned B5.

When I start my 2021 return, how can I ensure TT starts with my modified 2020 file vs what I filed ? 

Appreciate that insight, thanks.

---

You seem to have ignored my prior post with the 8606 rules.

I suggest that you amend 2020 - delete the 1099-R all together and re-enter saying that you converted the money.

That should produce a 1040 with the amount on 4a ans 4b and a 8606 with lines 16 & 18.

[RC519]

I did ignore because I chose to go with the other two, one of which had shared your opinion originally.

So you answered the background info and ignored my question about how to start next years return in such a way that it'll include the conversion not shown in this years return. 

BTW - I think IRS says if you are missing a form, wait until they ask for it.

BTW - What is the cost to refile .. would I do that thru TT as an E-file OR mail it in, etc. I never did it.

(I think the real cost is awakening a giant .. asking for more trouble than this is worth)  

When TT makes a mistake, do I get to re-file for free ? do they pay the fine ? I know the assumption is it was my mistake and it probably was .. just curious. 

So, moving FWD from here .. how does TT decide which file to copy & start with for my 2021 ?

Can I choose or rename to control ?

I now have a modified version in addition to the filed version. The modified version is preferred because it'll include the 2020 conversion in the forms that are for my records .. such as the IRA additional info W/S.  ?

Appreciate your input

[fanfare]

you're really struggling with a non-problem.

all this has no effect on your 2021 tax return.

Just proceed normally.

Note: if you you use Forms Mode, you become liable to get anomalous results. For that reason,  it's use is discouraged by some on this forum.

[RC519]

Thanks .. I have a LOT of activity for 2021 with two 401k LSD to my IRAs, one of which used NUA for a substantial amount (I paid EST taxes in Q1 for the CB).  Plus I did three more conversions, one of which was indirect (so I could add more withholding for the year).  So I'm trying to start without carrying over a missing figure from last year. Admittedly, its the "IRA additional Info" form (for my records) that is the most concerning at this point. I feel like the conversion for 2020 will not fill-in unless I begin my 2021 return with the "now-modified" 2020 return.  I admit I have been a bit OCD with financial matters .. trying to stay on top of it during these years before RMDs. 

Thank You         

[fanfare]

I think you'd be a lot better off using Quicken or a spreadsheet to track this activity, rather than Turbotax.

[RC519]

I agree and use Excel extensively to track quarterly income, primarily for est tax payments. This year I also have a listing of rollovers and conversions .. trying to anticipate the incoming 1099's. Hopefully the one for the NUA will show only the CB as taxable which I paid on Q1.

As for the TT generated forms, for my records, I don't actually use 'em, just prefer them to be accurate when I see them.  

I appreciate your input & wonder if you'd elaborate on why you believe my missing 8606 is not a problem.

I'm on the same page, just wonder if it's verbiage in I-8606, 590-A, B or something else. Maybe it's just a minor technicality with worst case $50 fine ? If you would please.