For 2023 taxes I was unable to file using TurboTax because they do not provide the 8606 form for inherited IRA's. Will it be that way for 2024?

Forum|Forum|1 year ago
September 28, 2024
3 replies
0 views

I had already purchased th disc and could not use it. I had to file a hand written return.

TurboTax Deluxe Online

DoninGA

Employee

I will page @dmertz who can provide more information concerning this issue.

fanfare

Employee

You must use a separate Form 8606 calculation to determine the taxable portion using the basis - if any - in the inherited IRA.
The problem is the software won't enter the correct Name:
And it won't handle the case where you too have a basis in your IRA and took a distribution.
-
You can calculate the taxed portion on Form 8606 yourself to discover the proper amount for 1099-R box 2a.
you can start a separate tax return in desktop TurboTax and use that one to calculate the Inherited IRA taxed portion.
Then you have to fudge up a 1099-R that produces those amounts on Form 1040 avoiding Form 8606.
---

After verifying you have the correct taxable amount on Line 4b,
E-file your return, don't file on paper.

After it is ACCEPTED ,
get Form 1040-X from IRS website and mail it in with your 8606(s), which you can also get in fillable PDF.
Note: since you are not changing any dollar amounts on your amended 1040-X, you can leave all the lines 1-23 EMPTY.
The names on 8606 should be "<owner> and <your name> BENE" or Beneficiary if it fits, and your SSN.

Part III explanation: "didn't include Form 8606 with e-File".

In a few months to a year, you will get an acknowledgement from the IRS.

@maraamelia99

Opus 17

Employee

Turbotax very definitely does include form 8606. I have no idea what your problem was.

In some cases, not all forms are ready on day 1. Sometimes the final versions of certain forms are not approved for e-filing until later in the tax season (end of January through February for most forms.) This is due to a combination of delays at the IRS and the time it takes to update the programming after the IRS approves the form. I don't know when form 8606 was ready last year or will be ready this year, but if you don't want to wait, you may have to file by hand again.

The desktop program has a 60 day money back guarantee.

dmertz

Employee

Opus 17, TurboTax does not support preparing a Form 8606 needed for reporting the inherited IRA distributions when an inherited traditional IRA has basis or for reporting nonqualified distributions from a Roth IRA. The needed Form 8606 must be prepared separately and mailed.

Given that TurboTax has maintained this deficiency for many, many years, there is probably no reason to believe that TurboTax will change for 2024.

Opus 17

Employee

@dmertz wrote:

Opus 17, TurboTax does not support preparing a Form 8606 needed for reporting the inherited IRA distributions when an inherited traditional IRA has basis or for reporting nonqualified distributions from a Roth IRA. The needed Form 8606 must be prepared separately and mailed.

Given that TurboTax has maintained this deficiency for many, many years, there is probably no reason to believe that TurboTax will change for 2024.

OK, I didn't realize that was such a specialized situation.