How to Fill Out Form 8606 for Backdoor Roth IRA in TurboTax?
Title: How to Fill Out Form 8606 for Backdoor Roth IRA in TurboTax? 1 I'm trying to figure out how to properly document a backdoor Roth IRA conversion in TurboTax. I made a non-deductible $6,500 contribution to a traditional IRA in January 2024 for the 2023 tax year, but this contribution didn't show up on my 2023 Form 8606 when I filed earlier this year. Now I need to amend my 2023 return so this contribution appears on Line 1 of Form 8606. Has anyone gone through this process with TurboTax before? I've been poking around the software and can't seem to find the right place to enter this information for an amended return. Any guidance would be super helpful since I want to make sure I'm documenting everything correctly for the IRS!
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Ravi Gupta
8 The Form 8606 is definitely what you need for reporting non-deductible IRA contributions, so you're on the right track. To amend your 2023 return in TurboTax, you'll need to start by opening your 2023 return and selecting the "Amend" option (usually under File or Tools menu). Once in the amendment process, navigate to the section for IRAs or retirement accounts. Look for something like "IRA Contributions" or "Retirement" in the TurboTax menu. When you find that section, there should be a specific question about non-deductible IRA contributions. Enter your $6,500 contribution there, and TurboTax should automatically generate the Form 8606 with that amount on Line 1. Make sure you select that this was a contribution for tax year 2023 made in 2024 (before the filing deadline). After completing this section, TurboTax will create both the amended Form 8606 and the Form 1040-X needed to submit your amendment.
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Ravi Gupta
•15 Thanks for this info! Quick follow-up - once I amend my return with the Form 8606 showing my non-deductible contribution, do I need to wait for the IRS to process that amendment before I can do the Roth conversion part? Also, will TurboTax help me report the conversion on next year's taxes too?
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Ravi Gupta
•8 You don't need to wait for the IRS to process your amendment before doing the Roth conversion. You can proceed with converting the traditional IRA funds to a Roth IRA anytime after making the non-deductible contribution. For reporting the conversion, yes, TurboTax will help with that on your 2024 return (filed in 2025). When you do your 2024 taxes, you'll report the conversion part of the backdoor Roth process again on Form 8606, but different lines. TurboTax will have a section about Roth conversions where you'll enter this information. The software will calculate if there are any taxable portions of your conversion (though with a backdoor Roth done properly, that should be minimal or zero).
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Ravi Gupta
12 After struggling with the exact same issue, I found a great solution using https://taxr.ai! I uploaded my 2023 return and a screenshot of my contribution confirmation, and their system gave me step-by-step instructions for amending my Form 8606 in TurboTax. The tricky part with backdoor Roth IRAs is making sure you report everything in the right tax year and on the right forms. With taxr.ai, I just answered a few questions about my specific situation, and they showed me exactly where to enter my contribution in TurboTax's amendment workflow. It even flagged that I needed to check the "made in 2024 for 2023" box that I would have missed.
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Ravi Gupta
•4 How does this taxr.ai thing handle the basis tracking between years? My accountant told me that's the most complicated part of backdoor Roth IRAs - keeping track of the basis from year to year. Does it help with that too?
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Ravi Gupta
•19 I'm a bit skeptical about using another tool when I'm already paying for TurboTax. Does it actually do anything you can't figure out with a bit of googling? I've been doing my backdoor Roth for years and just follow the IRS instructions.
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Ravi Gupta
•12 It absolutely helps with basis tracking! The tool analyzes your prior year returns to identify any existing basis and shows you how that carries forward. This ensures you don't accidentally pay tax twice on the same contributions. For people who've been doing this for years with a good system, you might not need the extra help. But I found it super valuable because it analyzes your specific tax situation rather than generic advice. It specifically identified that my prior return was missing the non-deductible contribution and showed me exactly how to fix it in TurboTax - down to the specific screens and buttons to click. Saved me hours of frustration!
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Ravi Gupta
4 I just wanted to follow up about my experience with taxr.ai after asking about it! I decided to give it a try with my backdoor Roth situation and WOW - it made everything so clear. I uploaded my previous tax returns and it immediately identified that I had been making a mistake in my basis tracking for the past 2 years! The tool showed me exactly where in TurboTax to go to amend my 2023 return to add the Form 8606 and properly record my non-deductible contribution. It even generated a custom checklist for my specific situation that I could follow step by step. I was able to fix not just my 2023 return but also understand how to properly report the conversion on my 2024 taxes next year. Really glad I found this!
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Ravi Gupta
16 I ran into this exact issue last year and spent HOURS on hold with the IRS trying to get clarification. After multiple failed attempts to reach a human being, I finally discovered https://claimyr.com and their service completely changed my experience. You can see how it works at https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone system for you and have an agent call you back directly. I got connected with an actual IRS representative who walked me through exactly how to handle my backdoor Roth IRA paperwork, including amending my Form 8606. The agent confirmed that I needed to file an amended return to report the non-deductible contribution for the previous year before properly reporting the conversion in the current year. Having that official confirmation gave me so much peace of mind about doing it correctly!
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Ravi Gupta
•7 Wait, how does this even work? Why would the IRS call you back just because some service asked them to? That sounds sketchy. Couldn't you just keep calling the IRS yourself until you get through?
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Ravi Gupta
•19 Sorry but this sounds like a complete waste of money. I've called the IRS plenty of times and while yes, there's a wait, eventually you get through. And half the time the agents don't even know the answer to complicated tax questions like backdoor Roth IRAs. I'm highly doubtful they're going to tell you anything you can't find in IRS publications.
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Ravi Gupta
•16 It's actually not sketchy at all - they don't make the IRS prioritize you or anything magical. They use technology to navigate the phone system and hold queue for you, then when they reach a human, they conference you in. So instead of you sitting on hold for hours, their system does it. I totally understand the skepticism - I felt the same way! But after trying to get through on my own for multiple days and getting disconnected after waiting 90+ minutes each time, I was desperate. The IRS agent I spoke with was actually super knowledgeable about Form 8606 and backdoor Roth procedures. She confirmed exactly which lines needed to be completed and how to properly document everything across tax years. Maybe I got lucky with a good agent, but it saved me from making a costly mistake on my amended return.
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Ravi Gupta
19 I have to eat my words and apologize to the folks suggesting Claimyr. After being skeptical, my frustration with the IRS phone system got the better of me and I tried it last week. I'm honestly shocked at how well it worked! I got a call back from an IRS agent within 2 hours, and he was incredibly helpful regarding my backdoor Roth situation. The agent walked me through exactly how to amend my 2023 return in TurboTax to properly reflect my non-deductible contributions on Form 8606. He even explained how this would affect reporting the conversion on my 2024 return next year. The clarity I got was worth every penny, and I didn't have to waste a day on hold. I stand corrected and am genuinely impressed.
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Ravi Gupta
3 Another option is to use the standalone Form 8606 if you don't want to do a full amended return. You can just fill out and file Form 8606 by itself to report your non-deductible IRA contribution without changing anything else on your original return. The IRS allows this specifically for Form 8606. I did this last year when I realized I forgot to report my non-deductible contribution. Just download the form from irs.gov, fill it out (focus on Line 1), sign it and mail it in. No need for Form 1040-X or going through the whole amendment process in TurboTax.
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Ravi Gupta
•15 Is there any downside to filing just the standalone Form 8606 versus doing a full amended return through TurboTax? It sounds easier but I'm worried it might raise flags with the IRS since it wouldn't match my original return.
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Ravi Gupta
•3 There's no real downside to filing the standalone form - it's actually specifically allowed by the IRS for this purpose. Form 8606 is unique in that it can be filed by itself after your original return. The IRS won't flag this as inconsistent because they understand people often need to report non-deductible IRA contributions separately. Your original tax liability doesn't change since non-deductible contributions don't affect your tax calculation for that year (they only matter when you withdraw or convert). The form just establishes your basis for future reference. Just make sure you sign the standalone form - that's the one requirement the IRS has for filing it separately.
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Ravi Gupta
10 Has anyone used H&R Block instead of TurboTax for handling backdoor Roth IRAs and Form 8606? I've been thinking about switching tax software this year and wonder if one handles this situation better than the other.
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Ravi Gupta
•22 I've used both for backdoor Roth reporting. In my experience, TurboTax is a bit more intuitive for Form 8606 and tracking basis between years. H&R Block can handle it too, but the interview questions aren't as clear for non-deductible contributions. TurboTax seems to have more built-in guidance specifically for backdoor Roth scenarios.
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Mateo Sanchez
I went through this exact same situation last year and can confirm the advice about amending your 2023 return is spot on. One thing to add - make sure you keep really good records of your non-deductible contribution confirmation from your IRA custodian (like Fidelity, Vanguard, etc.). When you do the conversion part later, you'll need to show that these funds have already been taxed, so the conversion should be essentially tax-free. The Form 8606 creates a paper trail that proves your basis in the traditional IRA. Without properly filing it for 2023, you could end up paying taxes twice on the same money when you convert. Also, if you're planning to do backdoor Roth conversions regularly, consider setting up a system to track this annually. It becomes much easier once you have the process down and are consistent about filing Form 8606 each year you make non-deductible contributions.
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Molly Hansen
•This is such great advice about keeping detailed records! I'm actually just getting started with backdoor Roth conversions and hadn't thought about the importance of that paper trail. Do you recommend keeping physical copies of everything or are digital records sufficient? Also, when you mention setting up a system for annual tracking, what does that look like practically? I want to make sure I'm organized from the beginning rather than scrambling to find documents later like the original poster.
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