Tax Form 8606 reports nondeductible traditional IRA contributions, traditional to Roth IRA conversions, and calculates taxable portions of nonqualified Roth IRA distributions. Enter the form under Federal Deductions Adjustments to Income Nondeductible IRAs. Report contributions in two steps: complete Form 8606 section one and enter contributions in IRA deduction entry. For Roth IRA distributions before age 59½, calculate taxable amounts in Form 8606’s Roth distributions section and adjust 1099-R box 2a accordingly. More info is in the IRS instructions.
If you made a nondeductible contribution to a traditional IRA, converted funds from a traditional IRA to a Roth IRA, or took certain Roth IRA distributions, you may need to file IRS Form 8606 with your 2026 tax return (filed in 2027).
Form 8606 helps track your IRA basis, reports Roth conversions, and determines whether part of a distribution is taxable. Completing the form correctly can help you avoid paying tax twice on the same money.
Where do I enter Form 8606 in the program?
To access Form 8606, go to:
- Federal
- Deductions
- Select My Forms
- Adjustments to Income
- Nondeductible IRAs
From there, complete the sections that apply to your situation.
How do I report a nondeductible traditional IRA contribution?
Reporting a nondeductible IRA contribution requires two separate entries.
Step 1: Complete the Form 8606 section
In the Nondeductible IRAs area, enter the following information if it applies to you:
- Your total basis in traditional IRAs
- Contributions made between January 1 and the tax filing deadline that were designated for the 2026 tax year
- The total value of all traditional, SEP, and SIMPLE IRAs as of December 31, 2026
- Any outstanding rollovers
- Traditional IRA distributions reported on Form 1099-R during 2026
- The net amount converted from traditional, SEP, or SIMPLE IRAs to Roth IRAs during 2026
- Any taxable amount related to qualified hurricane distributions, if applicable
Important
Any taxable amount calculated within this Form 8606 section does not automatically transfer to Form 1040. If the taxable amount differs from the amount shown on your Form 1099-R, you may need to manually update Box 2a of the 1099-R entry.
Step 2: Enter your traditional IRA contribution
To populate Line 1 of Form 8606, enter your contribution separately in the Traditional IRA Contribution section:
- Federal
- Deductions
- Select My Forms
- Adjustments to Income
- Traditional IRA Contribution
Both steps are necessary to properly report a nondeductible traditional IRA contribution.
How do I report Roth IRA distributions and calculate the taxable amount?
If you received a distribution from a Roth IRA before meeting the requirements for a qualified distribution, part of the withdrawal may be taxable.
Generally, your original Roth IRA contributions come out tax-free. However, earnings included in a nonqualified distribution may be subject to income tax.
Complete the Roth IRA distribution section of Form 8606
Enter the following information as applicable:
- Total nonqualified Roth IRA distributions received during 2026
- Your basis in Roth IRA contributions
- Your basis in Roth IRA conversions
- Any qualified first-time homebuyer expenses
After completing the section, the program will calculate the taxable portion of the distribution.
View the taxable amount
To see the calculated taxable amount:
- Select Summary/Print from the left menu.
- Print or preview your return.
- Review Line 25c of Form 8606.
Line 25c shows the taxable portion of your Roth IRA distribution. Make sure the amount reported in Box 2a of your Form 1099-R matches the taxable amount calculated on Form 8606
For more information regarding Form 8606, please review the IRS instructions.