I have an inherited IRA in which non-deductible contributions were made. TurboTax has me input taxable amount but does not generate Form 8606. This is a problem since the IRS requires form 8606 be attached with returns. It is essential to have form 8606 prevent double taxation by separating contributions that have already been taxed from pre-tax balances. Though I can fill out a form 8606 and mail returns, I would prefer TurboTax generate the form so that I can file electronically as I purchased TurboTax for that purpose. Is there any way to generate form 8606 for inherited IRA directly on TurboTax?
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TurboTax does not generate an inherited IRA Form 8606.The taxable amount of the Inherited IRA Distribution must be calculated separately on a Form 8606 outside of TurboTax. Only the the calculated taxable amount from that Form 8606 is entered in TurboTax. TurboTax only supports your own Form 8606, not a Form 8606 for an inherited IRA.
The 8606 for the inherited IRA is considered a part of your overall return, not a standalone document. Therefore you will have to print and mail your return. You should include the separately prepared Form 8606 with your return.
For an Inherited IRA, the names on 8606 should be "<owner> and <your name> BENE" or Beneficiary if it fits, and your SSN.
If only one IRA distribution is involved and you're willing to e-File under <your name>,
TurboTax will do the job of generating the proper amounts on Form 8606 when you treat the IRA as your IRA rather than Inherited IRA. Enter Code 7 instead of Code 4 .
TurboTax can't track the basis on more than one IRA per person.
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