FreeTaxUSA not filling out 8606 correctly (nondeductible IRA contributions)

[muel87]

FreeTaxUSA is overstating my IRA conversion income. But before I can even figure out why, one look at my 8606 tells me is isnt even accounting for my 2022 nondeductible contributions. Made $6k to mine and to my wife's. It isnt even asking if I made them for the current year, only if I had basis in prior years.... anyone know why?

Thinking about buying their priority support live chat for $8, but can they even help?

Thank you!

[Phil1234]

This article might help.

https://thefinancebuff.com/how-to-backd ... axusa.html

[AnnetteLouisan]

I had a similar experience w H&R Block with my backdoor Roth conversion. I’ll just send in an amendment once I figure it out. There was a good thread in this last March.

[mega317]

Did you go through the entire process? There are questions relevant to 8606 in both income and deduction sections.

[kd2008]

Freetaxusa did a great job for me for 8606. It asked all relevant questions, pulled up info from past returns and correctly calculated the taxable amount.

I filed start of Feb and already received my refund.

May be recheck your entries?

[retiredjg]

Somewhere along the line, you have to tell your software that you made the IRA contribution(s). It appears you have not done this.

[Lacrocious]

Freetaxusa did a great job for me for 8606. It asked all relevant questions, pulled up info from past returns and correctly calculated the taxable amount.

I agree - FreeTaxUSA did well for us. As others are saying, you need to go through the full interview. There is a 2nd section to enter info in under "Deductions / Credits --> Miscellaneous Adjustments --> Do you have any of these other adjustments? (Continue) --> Other Deductions and Credits (Continue) --> Taxable IRA Worksheet". Fill in the Taxable IRA Worksheet and then re-check 8606. This assumes you have already filled in the 1099-R Retirement Income section for the withdrawal of income from your IRA.

I believe that FreeTaxUSA then correctly showed both the Withdrawal and proper Tax Treatment for my Backdoor Roth. Obviously, double-check everything is right for your situation.
- L