Credit for past non-deductible contributions to an IRA via 8606 form

Forum|Forum|1 year ago
February 12, 2025
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While preparing my 2024 return, I attempted to get credit for past non-deductible contributions to my IRA via the 8606 form. I have used TurboTax for many years and have always been able to get this credit. For the current return (for 2024), TurboTax reported that I do not qualify for the credit. I think TurboTax is wrong (a bug?)). What can I do to resolve this issue?

BillM223

"TurboTax reported that I do not qualify for the credit. "

Please tell us what TurboTax said exactly. You don't get a "credit" in the tax sense for having basis in an IRA; instead, some or all of the distribution from the IRA is not taxable. So I assume that you are using the word "credit" in the colloquial sense.

So tell us what you did and how TurboTax reacted in more detail.

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trberkovichAuthor

I incorrectly classified my 1099 R as an IRA simple. I contacted my financial institution who reported that my IRA is neither SEP nor simple. So, I corrected the TurboTax form (to none of the above) that was associated with the 1099 R and TurboTax automatically started the input for the 8606.