TurboTax 2024 created an 8606 instead of applying contribution to traditional IRA in 2025 for 2024

Forum|Forum|11 months ago
April 14, 2025
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Wife's traditional IRA contribution was not deducted from AGI. TT noted that the contribution was over the limit for work when covered by a retirement plan at work. She is not in a retirement plan at work and that is correctly entered into TT W-2 section. IRS Pub 590 tells me she (and we) is well beneath the AGI limit.

TT created an 8606 for NON-DEDUCTABLE contribution though that was not what was entered in the interview section.

The contribution in 2025 for 2024 Traditional IRA appears correctly entered but no deduction. The TAX refund is way, way less than total TAX paid and effective tax rate is 11.19%.

How can I get TT to properly deduct the IRA contribution?

JamesG1

When entering your traditional IRA contribution, you may seen a screen that reports whether the traditional IRA contribution qualifies to be fully deductible.