Irs 8606 Form Details

The IRS requires that all individuals who are self-employed or have any other form of income besides wages, receive a W-2. If you are not receiving this form, it is possible that your employer has mistakenly classified you as an employee and failed to report your earnings. By filling out the 8606 Form, you can correct this mistake and be ensured that your taxes will be filed correctly. While there may not be much in terms of personal information needed on the 8606 Form, it does require some basic contact and financial data about both yourself and your spouse if applicable. This means that before submitting the form, please ensure that all necessary documents such as tax returns from previous years or bank statements for current year are available for reference.

Below is some information that may be handy in case you're aiming to learn the time it'll take you to complete 8606 form and how many PDF pages it has.

QuestionAnswer
Form Name8606 Form
Form Length2 pages
Fillable?Yes
Fillable fields48
Avg. time to fill out10 min 10 sec
Other namesform 8606 irs, form 8606, form irs printable, irs 8606

Form Preview Example

Form 8606

 

 

 

Nondeductible IRAs

 

 

 

 

OMB No. 1545-0074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

Department of the Treasury

 

Go to www.irs.gov/Form8606 for instructions and the latest information.

 

 

 

 

 

 

 

 

Attach to 2021 Form 1040, 1040-SR, or 1040-NR.

 

 

 

 

Attachment

Internal Revenue Service (99)

 

 

 

 

 

Sequence No. 48

Name. If married, file a separate form for each spouse required to file 2021 Form 8606. See instructions.

Your social security number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fill in Your Address

Home address (number and street, or P.O. box if mail is not delivered to your home)

 

 

 

 

Apt. no.

 

 

 

 

 

 

 

 

 

 

 

 

Only if You Are

 

 

 

 

 

 

 

 

 

 

 

 

City, town or post office, state, and ZIP code. If you have a foreign address, also complete the spaces below (see instructions).

Filing This Form by

 

 

 

 

 

 

 

 

 

 

 

 

Itself and Not With

 

 

 

 

 

 

 

 

 

 

 

 

Your Tax Return

Foreign country name

 

 

 

Foreign province/state/county

Foreign postal code

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Part I

 

Nondeductible

Contributions to Traditional IRAs

 

and Distributions From Traditional,

SEP, and SIMPLE IRAs

 

 

 

Complete this part only if one or more of the following apply.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

• You made nondeductible contributions to a traditional IRA for 2021.

 

 

 

 

 

 

 

 

 

• You took distributions from a traditional, SEP, or SIMPLE IRA in 2021 and you made nondeductible contributions to a

 

 

 

traditional IRA in 2021 or an earlier year. For this purpose, a distribution does not include a rollover (other than a

 

 

 

repayment of a qualified disaster distribution (see 2021 Forms 8915-D and 8915-F)), qualified charitable distribution,

 

 

 

one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions.

 

 

 

• You converted part, but not all, of your traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2021 and you made

 

 

 

nondeductible contributions to a traditional IRA in 2021 or an earlier year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Enter your nondeductible contributions to traditional IRAs for 2021, including those made for 2021

 

 

 

 

from January 1, 2022, through April 18, 2022. See instructions

.

 

 

1

 

 

2

Enter your total basis in traditional IRAs. See instructions

.

 

 

2

 

 

3

Add lines 1 and 2

.

 

 

3

 

 

 

 

In 2021, did you take a distribution

 

No

 

 

Enter the amount from line 3 on line 14.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

from traditional, SEP, or SIMPLE IRAs,

 

 

 

 

Do not complete the rest of Part I.

 

 

 

 

 

 

 

 

or make a Roth IRA conversion?

 

Yes

 

Go to line 4.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Enter those contributions included on line 1 that were made from January 1, 2022, through April 18, 2022

4

 

 

5

Subtract line 4 from line 3

.

 

 

5

 

 

6Enter the value of all your traditional, SEP, and SIMPLE IRAs as of December 31, 2021, plus any outstanding rollovers. Subtract any repayments of qualified

disaster distributions (see 2021 Forms 8915-D and 8915-F)

6

7Enter your distributions from traditional, SEP, and SIMPLE IRAs in 2021. Do not include rollovers (other than repayments of qualified disaster distributions (see 2021 Forms 8915-D and 8915-F)), qualified charitable distributions, a one-time distribution to fund an HSA, conversions to a Roth IRA, certain returned contributions, or recharacterizations of traditional IRA contributions (see

instructions)

7

8Enter the net amount you converted from traditional, SEP, and SIMPLE IRAs to

Roth IRAs in 2021. Also, enter this amount on line 16 .

. . . . . . . .

8

 

9 Add lines 6, 7, and 8

 

9

 

 

 

10Divide line 5 by line 9. Enter the result as a decimal rounded to at least 3

places. If the result is 1.000 or more, enter “1.000”

10

×

.

11Multiply line 8 by line 10. This is the nontaxable portion of the amount you

converted to Roth IRAs. Also, enter this amount on line 17

11

12Multiply line 7 by line 10. This is the nontaxable portion of your distributions

 

that you did not convert to a Roth IRA

12

 

 

13

Add lines 11 and 12. This is the nontaxable portion of all your distributions

 

13

14

Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2021 and earlier years .

 

14

15a

Subtract line 12 from line 7

15a

bEnter the amount on line 15a attributable to qualified disaster distributions from 2021 Forms 8915-D and 8915-F (see instructions). Also, enter this amount on 2021 Form 8915-D, line 23; or 2021 Form

8915-F, line 18, as applicable . . . . . . . . . . . . . . . . . . . . . . . . 15b

cTaxable amount. Subtract line 15b from line 15a. If more than zero, also include this amount on 2021 Form 1040, 1040-SR, or 1040-NR, line 4b . . . . . . . . . . . . . . . . . . . . 15c Note: You may be subject to an additional 10% tax on the amount on line 15c if you were under age 59½ at the time of the distribution. See instructions.

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 63966F

Form 8606 (2021)

Form 8606 (2021)

Page 2

Part II 2021 Conversions From Traditional, SEP, or SIMPLE IRAs to Roth IRAs

Complete this part if you converted part or all of your traditional, SEP, and SIMPLE IRAs to a Roth IRA in 2021.

16If you completed Part I, enter the amount from line 8. Otherwise, enter the net amount you converted

from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2021 . . . . . . . . . . . . .

17If you completed Part I, enter the amount from line 11. Otherwise, enter your basis in the amount on

line 16 (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . .

18Taxable amount. Subtract line 17 from line 16. If more than zero, also include this amount on 2021 Form 1040, 1040-SR, or 1040-NR, line 4b . . . . . . . . . . . . . . . . . . . .

Part III Distributions From Roth IRAs

16

17

18

Complete this part only if you took a distribution from a Roth IRA in 2021. For this purpose, a distribution does not include a rollover (other than a repayment of a qualified disaster distribution (see 2021 Forms 8915-D and 8915-F)), qualified charitable distribution, one-time distribution to fund an HSA, recharacterization, or return of certain contributions (see instructions).

19 Enter your total nonqualified distributions from Roth IRAs in 2021, including any qualified first-time

 

 

 

homebuyer distributions, and any qualified disaster distributions (see instructions). Also, see 2021

 

 

 

Forms 8915-D and 8915-F

. . . .

19

 

20

Qualified first-time homebuyer expenses (see instructions). Do not enter more than $10,000 reduced

 

 

 

by the total of all your prior qualified first-time homebuyer distributions

. . . .

20

 

21

Subtract line 20 from line 19. If zero or less, enter -0-

. . . .

21

 

22

Enter your basis in Roth IRA contributions (see instructions). If line 21 is zero, stop here .

. . . .

22

 

23

Subtract line 22 from line 21. If zero or less, enter -0- and skip lines 24 and 25. If more than zero, you

 

 

 

may be subject to an additional tax (see instructions)

. . . .

23

 

24

Enter your basis in conversions from traditional, SEP, and SIMPLE IRAs and rollovers from qualified

 

 

 

retirement plans to a Roth IRA. See instructions

. . . .

24

 

25a

Subtract line 24 from line 23. If zero or less, enter -0- and skip lines 25b and 25c . . .

. . . .

25a

 

b Enter the amount on line 25a attributable to qualified disaster distributions from 2021 Forms 8915-D

 

 

 

and 8915-F (see instructions). Also, enter this amount on 2021 Form 8915-D, line 24; or 2021 Form

 

 

 

8915-F, line 19, as applicable

. . . .

25b

 

c

Taxable amount. Subtract line 25b from line 25a. If more than zero, also include this amount on 2021

 

 

 

Form 1040, 1040-SR, or 1040-NR, line 4b

. . . .

25c

 

Sign Here Only if You

Under penalties of perjury, I declare that I have examined this form, including accompanying attachments, and to the best of my knowledge and

Are Filing This Form

belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

 

 

 

 

 

 

 

by Itself and Not With

 

 

 

 

 

 

 

Your Tax Return

 

 

 

 

 

 

 

 

Your signature

 

 

 

Date

 

 

 

 

 

 

 

 

 

 

 

 

 

Paid

 

Print/Type preparer’s name

Preparer’s signature

Date

 

 

Check

if

PTIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

self-employed

 

Preparer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Firm’s name

 

 

 

 

Firm’s EIN

 

Use Only

 

 

 

 

 

Firm’s address

 

 

 

 

Phone no.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Form 8606 (2021)

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step 1 to completing  8606

The system will need you to complete the Yes, ▶ Go to line 4, Do not complete the rest of Part I, Enter your nondeductible, 13 14 15 a Subtract line 12 from, and 13 14 15a field.

step 2 to completing  8606

Indicate the key data in Enter your nondeductible, 13 14 15 a Subtract line 12 from, b c, Enter the amount on line 15a, 13 14 15a, 15b, 15c, For Privacy Act and Paperwork, Cat, and Form 8606 (2021) box.

Entering details in  8606 stage 3

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