Instructions for IRS Form 8606 Nondeductible Iras

This document contains official instructions for IRS Form 8606 , Nondeductible Iras - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury.

FAQ

Q: What is IRS Form 8606?
A: IRS Form 8606 is a tax form used to report contributions to and withdrawals from nondeductible IRAs.

Q: Who needs to file IRS Form 8606?
A: You need to file IRS Form 8606 if you made contributions to or withdrawals from a nondeductible IRA during the tax year.

Q: What is a nondeductible IRA?
A: A nondeductible IRA is an individual retirement account where the contributions are made with after-tax dollars and cannot be deducted from your income taxes.

Q: When is IRS Form 8606 due?
A: IRS Form 8606 is typically due by the date you file your federal income tax return, which is usually April 15th.

Q: What information is required on IRS Form 8606?
A: IRS Form 8606 requires you to report the total contributions made to your nondeductible IRA, any previous distributions from the IRA, and the current year's distributions.

Q: Is there a penalty for not filing IRS Form 8606?
A: If you are required to file IRS Form 8606 and fail to do so, you may face penalties and interest on any taxes owed.

Q: Can I e-file IRS Form 8606?
A: Yes, you can e-file IRS Form 8606 using tax software or through a professional tax preparer.

Q: Do I need to keep a copy of IRS Form 8606 for my records?
A: Yes, it is recommended that you keep a copy of IRS Form 8606 for your records in case of future tax audits or inquiries.