This was supposed to be ready days ago...still can't file. I pay for TT to file early...they are not meeting expectations. After many, many years of using TT its time to start looking at other options. This is not a difficult form; or from what I can tell from research that is changing at all this year.
I received word today, Feb 14, it was ready. When you open up TT again, update forms, and you will see it has been printed okay in your online forms.
Software is up to date and still says forms ready soon with no information on when soon is. Still cannot file
I am using the webpage. How do I "update" my forms? I am also not seeing form 8606.
I took out money from my Roth IRA as a distribution. I already paid taxes on this over the years, however it is considering all of my distribution as income. I apparently need to file form 8606, however it is not being auto-generated, as the help FAQ implies. Any idea?
Unfortunately the forms are still not ready, but we expect them to be available soon.
@xypeix wrote:
I am using the webpage. How do I "update" my forms? I am also not seeing form 8606.
I took out money from my Roth IRA as a distribution. I already paid taxes on this over the years, however it is considering all of my distribution as income. I apparently need to file form 8606, however it is not being auto-generated, as the help FAQ implies. Any idea?
What code is on box 7 on the 1099-R?
The 8606 is indeed available now (with the 2/12 update) . Perhaps you did not enter the 1099-R correctly. Delete it ans re-enter as below.
You can always withdraw your own Roth contributions tax and penalty free.
Enter a 1099-R here:
Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
One of the followup questions will ask for your prior year** contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.
Note: **Prior year - any current year Roth contributions should be entered into the IRA contributions section. They will not show up in the prior years contributions but will be accounted for on the 8606 form that calculates the taxable amount.
Hi macuser_22, thanks for your response. I am still having trouble processing this idea. I got to the part where it is asking for my prior year Roth IRA contributions.
Let's say over the past 5 years, I deposited 20k. Now my account is worth 22k total (gains/earnings).
I withdrew the full 22k, so there is technically nothing left in my Roth IRA, so I put "0" for the contributions that remain in my Roth IRA.
By doing this, it is implying that I took everything and thus have 22k in extra income, however it is not counting my own 20k worth of contributions over the year. I don't think this is right. Any help?
You do not enter 0 for yiur prior contributions if you have not previously withdrawn all you your prior years contributions. It is asking what your total prior contributions were prior to the current distribution. There is a separate question that asks the current value of the Roth and that would be zero if you closed the account but that is a different question.
If your prior contributions totaled 20K and you have not already withdrawn any of that then enter 20K. Only the 2K of earnings will be taxable if you are under age 59 1/2.