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!

[mghunter112]

I received a form I wasn’t expecting after I filed & I don’t know where to find  my 8606-t or how to add it to my taxes.

[LinaJ2018 · Accepted solution]

Form 8606 is a form for reporting nondeductible IRAs.  One of the purposes of filing this form is to keep track on your IRA nondeductible contributions to traditional IRAs so that the taxability of your future IRA distribution will be correctly calculated based on your IRA basis ( which are the nondeductible contribution portions).  In addition, you also use it to report other IRA-related transactions where the government needs to track the status of your money—whether it’s been taxed or untaxed. 

·         Take distributions from a Roth IRA ( especially calculate the taxable amount of a nonqualified Roth IRA distribution.)

·         Take distributions from a traditional, SEP or SIMPLE IRA at any time after you have made nondeductible IRA contributions

·         Convert a traditional, SEP or SIMPLE IRA into a Roth IRA

If this form applies to you, please see the followings:

Since you have already submitted your return, at this point, you cannot make any corrections to your tax return.

You have two options: 

If your return got rejected for any reasons, you can return to the program/account to edit the info along with other changes.  You do not need an amendment 1040-X.

If your return has been accepted, please see the following :

You will have to amend your return by filing a Form 1040X.  You should not try to amend your return until it has been fully processed and you have received your refund or your payment has cleared.  If by editing the information does not change the refund or amount you owe, you do not need to submit the amendment. 

Amended returns do not “catch up” to your original return and replace them;  they are processed as two separate returns.  

Amended returns have to be printed and filed by mail.  It can take the IRS up to 12 weeks or longer to process them.   If you are due a larger refund than on your original return, your amended return should only show the difference and you will receive a separate check for it.  If you owe money on your amended return, it will show only the new amount owed, you will have to mail a check with the return. 

https://ttlc.intuit.com/replies/3288565

[RC519]

Just noticed that last year's return had no 8606. I do a back-door Roth each year and this is the first one missing. My TIRA is completely funded with roll-overs, no contributions ever, and ZERO cost basis (no non-deductable).

My AGI was not changed .. the only anomaly with the 1040 is that line 4a in blank, 4b has the distribution. On the 8606, typically only line 16 & 18 are filled in by TT.

I have asked a few forums about this and got three(3) answers ..

One- don't do anything until / unless I hear from the IRS 

Two- mail in 8606 with a note explaining your AGI is unchanged.

Three- file a 1040x and add the 8606

What is you opinion ?  

[Critter-3]

Option 3 is the correct way to fix this .   Going forward review the entire return carefully before you file. 

[fanfare]

" My TIRA is completely funded with roll-overs"

If you have a TIRA with non-zero value and no prior years basis,

you can't do a Backdoor Roth  contribution, by definition.

By "Backdoor" is meant, a permitted conversion to Roth that is tax-free.

[RC519]

If 8606 reports non-deductible and calculates ones cost basis. I don't have either of these. Each year I do Roth conversion(s) and pay income tax on that amount in the quarter(s). I thought that was a back-door Roth. Each year TT adds an 8606 and only fills in lines 16 & 18 in part 2. This past year the 8606 was not added. I just discovered this and have to assume that a mistake was made. The root cause is still a mystery as it probably lies in one of the many questions TT asks in the process. By now the 5498 has been received and if the IRS wants the 8606, they will surely let me know. I'd prefer to get another's reply, since it's clear what Critter thinks. On a side note, is there any way to reduce the badge-er-ing emails ? This is a serious forum and those are just too silly. Appreciate your response.

[fanfare]

@RC519 

Did you pay according to the Form 8606 calculation.??

If so, but you did not file Form 8606, (not clear how this could happen) you should do so by attaching it to Form1040-X with an explanation.

That's all there is to it.

If the form  calculation changes your tax due, then you have to file 8606 and any other forms and schedules that changed due to your amendment.

[RC519]

Only lines 16 & 18 are populated with the conversion amount.  Part 1 is never even filled out. No change to taxable income or other forms except 1040 line 4a is blank, 4b alone has conversion. In previous years, 4a is populated, 8606 is always line 16 & 18 only. Once I file the next return (for 2021) won't the missing form be a moot point ? 

[fanfare]

The purpose of Form 8606 is to track prior years basis.

Based on what you said you had no prior years basis (no Part I)

or you didn't enter it.

when there is no change to your basis, you don't have to file Form 8606.

If you had a basis but did not enter it, you filed incorrectly.

[RC519]

Thanks .. "when there is no change to your basis, you don't have to file Form 8606" .. sounds good to me.

TT included 8606 in previous years in identical situation (part-2 only & just lines 16 & 18).

Is there a source to back that up ? That would be ideal.  Thanks !

[fanfare]

Do you have a prior years basis, or not ??

[macuser_22]

---

@RC519 wrote:

Thanks .. "when there is no change to your basis, you don't have to file Form 8606" .. sounds good to me.

TT included 8606 in previous years in identical situation (part-2 only & just lines 16 & 18).

Is there a source to back that up ? That would be ideal.  Thanks !

---

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.]

If none of those occurred, then the last filed 8606 remains in effect

There are some circumstances when a 8606 must be files for other reasons and might require filing a stand-alone 8606.

https://ttlc.intuit.com/questions/1899503-what-is-form-8606-nondeductible-iras-used-for

[macuser_22]

BTW this post is years out of date.    The 6/6/ 2019 posting date is the date that the  "old" forum was migrated to this new forum so any post with that date can be much older and should not be relied on.  However, the 8606 rules have not changed for many years.

[RC519]

No, never had any basis .. my TIRA has no after-tax content.  Thanks 

It's only been the last few years when I do a Roth conversion that TT generates one with lines 16 & 18 only. This past year was no different except .. for whatever reason .. no 8606 was generates and so I filed without it. Thanks

[RC519]

So I did do a Roth conversion but never had any non-deductible content in the TIRA. I see the conversion in #3 and can only hope that assumes one may have a basis to calculate .. I do not.  So, last years filing for 2020 was missing the 8606 but AGI and taxes due/paid are not changed. The only other anomaly is that the 1040-sr has line 4a blank and line 4b alone has the conversion amount.  Do you think I'm okay to do nothing, should In send in an 8606 alone (with explanation), or in conjunction with a 1040-x. I feel it will become moot after the next filing .. repeating the same process WITH the TT generates 8606 .. still no basis. Perhaps I should fill out part 1 to make it perfectly clear that I have no basis ?

Thoughts ?