How do I fill out Form 8606 for nondeductible IRA contributions or IRA distributions?
Form 8606 will automatically generate if you made nondeductible IRA contributions, or if you received an IRA distribution that wasn't fully taxable because you have basis in your IRA account that's shown on prior year tax returns on Form 8606.
Nondeductible IRA Contributions
Enter your IRA contributions on the IRA Contributions screen. If your contributions aren't deductible we'll automatically include them on Form 8606. You can also choose to make otherwise deductible contributions nondeductible on the Taking the IRA Deduction screen.
Nondeductible IRA Distributions
If you received an IRA distribution and have IRA basis shown on prior year tax returns on Form 8606, your IRA distribution should be only partly taxable. The calculation of the taxable amount will be shown on this year's Form 8606. If you believe you have an IRA distribution that's not fully taxable, but the Form 8606 isn't printing, check out the following:
Nondeductible IRA Contributions
Enter your IRA contributions on the IRA Contributions screen. If your contributions aren't deductible we'll automatically include them on Form 8606. You can also choose to make otherwise deductible contributions nondeductible on the Taking the IRA Deduction screen.
Nondeductible IRA Distributions
If you received an IRA distribution and have IRA basis shown on prior year tax returns on Form 8606, your IRA distribution should be only partly taxable. The calculation of the taxable amount will be shown on this year's Form 8606. If you believe you have an IRA distribution that's not fully taxable, but the Form 8606 isn't printing, check out the following:
- On the screen after the 1099-R screens, you'll be asked for any basis in your IRA. If you enter basis for an IRA and have an IRA distribution then it'll reduce the taxable amount of the IRA distribution by part or all of the basis and the Form 8606 will print.
- Check to make sure you didn't choose to treat the IRA distribution as a rollover. On the screen right after the 1099-R screen where you entered the IRA distribution, there's a screen called the Distribution Rollover screen. On the Distribution Rollover screen there's a checkbox that, if marked, will treat the entire 1099-R distribution as being a rollover and not taxed. There's also an amount box on that screen where you can specify part of the distribution as a rollover. Make sure those aren't used if the 1099-R for your IRA distribution wasn't a rollover distribution. If you're marking that your IRA distribution is rolled over, then none of the IRA distribution will show up as taxable income on your tax return and Form 8606 won't generate.
