The TaxAct program will not prompt you to enter the basis of your traditional IRAs if you do not enter the information for Boxes 1, 2a or 2b, and 7, on your Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc..

To report Form 1099-R and the basis of your Traditional IRA (if you need help accessing Form 1099-R, go to our Form 1099-R - Entering Distributions from Retirement Plans FAQ):

1. From within your Form 1099-R, continue with the interview process until you reach the screen titled Retirement Plan Income - Nondeductible IRA Contributions (if you don't enter the information correctly, you won't see this screen).
2. Click the checkbox next to Prior year nondeductible traditional IRA contributions(s), and continue with the interview process to enter your information.

The basis amount entered will transfer to Form 8606 Nondeductible IRAs, Line 2.

Per IRS Publication 590-A Contributions to Individual Retirement Arrangements (IRAs), page 16:

Cost basis. You will have a cost basis in your traditional IRA if you made any nondeductible contributions. Your cost basis is the sum of the nondeductible contributions to your IRA minus any withdrawals or distributions of nondeductible contributions.

Refer to the "Are Distributions Taxable?" section starting on page 28 of Publication 590-B Distributions from Individual Retirement Arrangements (IRAs) for additional information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.