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Turbo Tax - form 8606 question
Old 03-01-2021, 03:13 PM   #1
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Turbo Tax - form 8606 question

I saw the other thread about the filing errors related to IRA's and I guess I will hold off on filing to review and try to avoid any Turbo Tax bugs. However, I have a different question.

Over the years I have made non-deductible contributions to my T-IRA. When I did the forms by hand, I would fill out Form 8606 every year. It seems I did ROTH conversions in 2017 and 2018 and Turbo Tax generated Form 8606. But last year I did not do a ROTH conversion and Turbo Tax did not create Form 8606.

I read some online advice saying that you could force Turbo Tax to create Form 8606 by going through the non-deductible contribution sequence. I tried to do this for my 2020 Turbo Tax and put $0.00 for the contribution. It gave me a screen showing the basis from the 2018 return's form 8606 - so it seems to know about it. But when I printed the forms for review, there is no form 8606.

I plan to do a ROTH conversion in 2022 or maybe could do a small one in 2021 just to force the form to be generated. So I guess things will get back on track at that point.

If I have the 2018 return with the Form 8606 from the last activity that affected my basis, do I need to worry that the basis was not carried forward on the Form 8606 for 2019 and 2020?

Just to be clear. In 2019 and 2020 there were no contributions, withdrawals or ROTH conversions. So the current basis is the same as on the 2018 form.

Thanks.

Joe
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Old 03-01-2021, 03:37 PM   #2
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My version of TurboTax, 2020, still shows the correct IRA basis as reported on my 2014 tax return, have not needed the 8606 in years 2015-2019 as no activity. Turbotax appears to keep track of the correct basis from year to year, even without an 8606 being generated.
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Old 03-01-2021, 03:46 PM   #3
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Quote:
Originally Posted by RE2Boys View Post
My version of TurboTax, 2020, still shows the correct IRA basis as reported on my 2014 tax return, have not needed the 8606 in years 2015-2019 as no activity. Turbotax appears to keep track of the correct basis from year to year, even without an 8606 being generated.
+1
I have been seeing the same thing with TT regarding non-deductible IRA basis.
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Old 03-01-2021, 03:57 PM   #4
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You may be having the problem discussed in this thread: https://www.early-retirement.org/for...ms-108180.html
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Old 03-01-2021, 03:58 PM   #5
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on the "step by step" under 1099-R distributions there is a yes no question on whether you made non deductible contributions. As long as you check "yes" it will continue to track your basis.

One year I forgot to check yes and over paid as it calculated the entire withdrawal as taxable when 25% was already taxed. Had to file amended return. Major pain in the butt!!!
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Old 03-02-2021, 12:37 PM   #6
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In TT, look for the "IRA Information Worksheet". It tracks your "non deductible" contributions there. It is in line 1 "Total basis in Traditional IRAs". It tracks it irrespective of whether you get an 1099R or not.


This year, my first attempt at importing last year's TT tax data didn't include my IRA basis, but pulled in my spouses. They fixed the bug and I was able to import the data correctly subsequently.
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