Question

Why does turbotax generate an 8606 one year for a non-deductible contribution, and then have a $0 basis reported the next year?

Forum|Forum|3 years ago
March 9, 2023
1 reply
0 views

Now it must be amended

TurboTax Online

Employee

If you ever mistakenly answer No, when TurboTax asks if you made any nondeductible traditional IRA contributions, TurboTax will silently delete any basis carried in from the previous year. There are also several bugs in TurboTax that can cause basis information to become corrupted if you made a Qualified Charitable Distribution or an HSA Funding Distribution.

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ibdvlisebvlawhbflejcAuthor

Thanks, seems like a pretty basic check given that it already verifies whether your contribution is deductible or not based on income. Don't know why it can't keep track of basis established in prior years with the same program and ask more explicitly whether it should be reduced for some reason.