I've been using TurboTax since 2010.
For 2013-2017, I made the maximum traditional IRA contributions for myself and my wife ($6500 + $6500 = $13K). The IRAs are simply bank CDs that I fund at the end of each year. Each year, due to our income, some or all of my $6500 contribution has been nondeductible. For 2013-2017, I have a total of about $18K in nondeductible contributions, which TT has duly reported on IRS Form 8606 each year.
Since my income tax situation is very simple, I have paid no attention to the Form 8606 prepared by TT. Since they have been doing my taxes since 2010, I simply assumed they knew what they were doing.
In looking at the Form 8606, it now appears to me that it is a "rolling" form - that each 8606 should include the value of all my traditional IRAs and the value of all my nondeductible contributions, so that the one for this year would show not only the 2017 $6500 contribution and $6500 nondeductible portion, but also the value of all my IRAs since 2013 and the total of $18K in nondeductible contributions.
Is this a problem, did TT goof, or am I misunderstanding Form 8606?
For 2013-2017, I made the maximum traditional IRA contributions for myself and my wife ($6500 + $6500 = $13K). The IRAs are simply bank CDs that I fund at the end of each year. Each year, due to our income, some or all of my $6500 contribution has been nondeductible. For 2013-2017, I have a total of about $18K in nondeductible contributions, which TT has duly reported on IRS Form 8606 each year.
Since my income tax situation is very simple, I have paid no attention to the Form 8606 prepared by TT. Since they have been doing my taxes since 2010, I simply assumed they knew what they were doing.
In looking at the Form 8606, it now appears to me that it is a "rolling" form - that each 8606 should include the value of all my traditional IRAs and the value of all my nondeductible contributions, so that the one for this year would show not only the 2017 $6500 contribution and $6500 nondeductible portion, but also the value of all my IRAs since 2013 and the total of $18K in nondeductible contributions.
Is this a problem, did TT goof, or am I misunderstanding Form 8606?