Per IRS instructions, the Form 8606, Nondeductible IRAs isn't needed if there is no distribution or contribution during the tax year.
If Form 8606 is not generating:
- If a 1 for maximum deduction is entered in Screen 24, Adjustments to Income in the IRA contributions (1 = maximum deduction) field, Lacerte will calculate the maximum deductible contribution allowed and not generate Form 8606.
- When you enter a dollar amount and the taxpayer or spouse is covered by a retirement plan, Lacerte carries the nondeductible amount to Form 8606.
- Make sure the IRA/SEP/SIMPLE box on Screen 13.1, Pensions, IRA Distributions is selected. If it isn't selected, amounts flow to 16b instead of 15b, and Form 8606 won't generate.
To force Form 8606 to print when the basis isn't affected:
- Enter a 2 in the field 1=not filing with Form 1040, 2=force.