Turbotax bug - Traditional IRA Cost Basis reporting with no contribution in current year not allowing me to generate 8606 for this purpose

Forum|Forum|2 years ago
February 24, 2024
1 reply
0 views

I have no current year IRA Contribution, but I have a Traditional IRA Cost Basis which I reported in TurboTax from prior years. For decades, I have reported these prior year contributions and included Form 8606 with my prior tax filings to track this Cost Basis (pre-TurboTax). TurboTax shows me this information in the worksheet when I go to the Print Center, but refuses to add a 8606 for me to report & track my prior IRA cost basis without a contribution for this year, which should not be a required for this form to be included.

I attempted to resolve this with phone support, but they seem unable to figure out how to help me resolve this bug.

TurboTax Premier Online

Best answer by dmertz

TurboTax is behaving correctly. Per the IRS instructions for Form 8606, Form 8606 is only to be included in your tax return if you have made a nondeductible traditional IRA contribution for the year or during the year you have made a regular traditional IRA distribution involving basis in nondeductible traditional IRA contributions, you have done a Roth conversion, or you made a nonqualified distribution from a Roth IRA.

Having done none of these transactions, no From 8606 is to be present in your tax return. Your last-filed Form 8606 is still current in its reporting of your basis in nondeductible traditional IRA contributions that carries forward.

dmertzAnswer

Employee

pete007Author

Thanks, glad to hear that one of my issues which I thought was a problem is apparently a non-issue (not sure why my prior accountant inserted this 8606 annually solely to re-report my cost basis). Now I just need to get some resolution on my other issue so I can make sure I am filing my taxes accurately before I push the button to file.