In certain situations (such as recharacterization of an IRA contribution or Roth IRA conversion, return of IRA contributions, or return of excess traditional IRA contributions), a statement must be attached to your return explaining the recharacterization or distribution. IRS Instructions for Form 8606, Nondeductible IRAs, provides the most definitive guidance for reporting recharacterizations. You can create this attachment in the TaxAct program, and it will be attached to your return when you e-file or print.
To attach an IRA distribution explanation in the TaxAct program, follow the steps below.
Online
Dashboard
From within your TaxAct return, click Resources.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Under My Return, click Federal Search.
Click the Retirement Plan Income drop-down, then click IRA distribution explanation.
Complete the rest of the interview process.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Retirement Plan Income drop-down, then click IRA distribution explanation.
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Retirement Plan Income drop-down, then click IRA distribution explanation.
Complete the rest of the interview process.
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