How to report a non-deductible contribution to Turbo Tax. I noticed a lot of folks were having the same problem I did. If Turbo Tax doesn’t prompt you to give this information the first time around you have to go back and find it yourself. Here’s how I solved the problem and I hope it helps you!…(read more)
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Individual Retirement Accounts (IRAs) offer a great way to save for retirement while enjoying tax benefits. IRAs come in two types: deductible and non-deductible. While a deductible IRA contribution can reduce your taxable income, a non-deductible IRA contribution cannot.
If you have made a non-deductible IRA contribution, you will need to report it on your tax return. The good news is that TurboTax, the popular tax preparation software, makes it easy to report non-deductible IRA contributions.
Here is a step-by-step guide on how to report a non-deductible IRA contribution to TurboTax:
Step 1: Enter your personal information
When you start a new tax return in TurboTax, you will be asked to enter your personal information such as your name, address, and social security number. Make sure you have your IRA contribution statement handy as you will need to enter the amount of your non-deductible contribution.
Step 2: Navigate to the Deductions & Credits section
Once you have entered your personal information, select the Deductions & Credits tab in TurboTax. Then, select the Retirement & Investments option.
Step 3: Enter your non-deductible IRA contribution
Under the Retirement & Investments section, you will see an option to Enter Contributions to Traditional IRAs. While a non-deductible IRA contribution is not deductible on your taxes, you still need to report it to the IRS. Select this option and enter the amount of your non-deductible IRA contribution.
Step 4: Verify your IRA contribution
After entering your non-deductible IRA contribution, TurboTax will ask you to verify the information you have provided. Make sure to review the information carefully to ensure that everything has been entered correctly.
Step 5: Complete the rest of your tax return
Once you have reported your non-deductible IRA contribution, you can continue with the rest of your tax return. TurboTax will guide you through the process of reporting any other income, deductions, and credits.
In conclusion, reporting a non-deductible IRA contribution to TurboTax is easy and straightforward. Make sure to have your contribution statement on hand and follow the steps outlined above to ensure that you report your non-deductible contribution accurately. By doing so, you can make sure that you are paying the right amount of taxes and not leaving any money on the table.
Do you have to report Roth IRA? I thought that has been taxed and nothing to report. But when I tried to enter my Roth IRA contribution, turbotax deduct more of my returns. as if it taxed the money I added to Roth IRA. That money was after tax and I contribute that manully myself.
You are a godsend for this! Spent way too much time banging my head against the wall trying to figure this out.
Capturing in the software is good but how do I file 8606 form from turbo tax ?
Thank goodness for this video. I coulnt find where in Turbotax to enter my traditional ira contribution.
How about if I utilized the Cares Act to withdraw money from my company 401k and then deposited it to an IRA within 2020 for a tax free distribution and funding to IRA. I can't figure out where TurboTax hides this.
Solid advice thanx for sharing.