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8606 for current and previous years

Forum|Forum|1 year ago
February 1, 2025
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Hello,

I started contributing to Traditional IRA since the last several years and none of those contributions are deductible. However I have never filed 8606 with the basis for those yearly contributions. Can I sum up all my previous years basis and add it in this years 8606 filing. Please advise how to take it forward. I have been using TurboTax since several years now but for some reason this form was not triggered for me or I completely missed it.

TurboTax Deluxe Online

Best answer by dmertz

You cannot simply total the nondeductible contributions that you failed to report and treat that as an adjustment to your basis. You were required by law to report the nondeductible contributions on Form 8606 for each year that they were made. You must file each Form 8606 that you were previously required to file. Box 14 of each Form 8606 will carry forward to box 2 of the next Form 8606 that you were required to file.

Had you entered the traditional IRA contribution and TurboTax determined that it was to be treated as nondeductible, TurboTax certainly would have created the necessary Form 8606. Check your previously filed tax returns to make sure that they contributions were not actually deductible and present on Schedule 1 line 20 (or as an IRA deduction on Form 1040 for years before 2018, the year Schedule 1 was introduced).

D

dmertzAnswer

Employee

You cannot simply total the nondeductible contributions that you failed to report and treat that as an adjustment to your basis. You were required by law to report the nondeductible contributions on Form 8606 for each year that they were made. You must file each Form 8606 that you were previously required to file. Box 14 of each Form 8606 will carry forward to box 2 of the next Form 8606 that you were required to file.

Had you entered the traditional IRA contribution and TurboTax determined that it was to be treated as nondeductible, TurboTax certainly would have created the necessary Form 8606. Check your previously filed tax returns to make sure that they contributions were not actually deductible and present on Schedule 1 line 20 (or as an IRA deduction on Form 1040 for years before 2018, the year Schedule 1 was introduced).

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dtubintAuthor

Thanks dmertz.

I reviewed the previous forms in TurboTax and you are right the form 8606 exists for the year 2021, 2022. However the cost basis was always 0 for 2021 and 2022( perhaps this is what I goofed up ). I didn't find 8606 for 2023. Not sure how that was missed out but I know that it was amended for 2023 and may be due to that, it doesn't show up? I don't know. I believe I used Credit Karma for 2020 filing and was hoping to see the tax document in TurboTax but its not available. I will have to figure out how to access it. Given this circumstances, what would you advise.

2021:

14 Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2021 and earlier years: 6000

2022:

14 Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2022 and earlier years: 6000

2023: No Entry in the amended form.