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Instructions Form 8606 You can file a standalone 2013 Form 8606 to report the nondeductible the instructions for 2013 Form 8606: irs.gov/pub/irsprior/i86062013.pdf. Here's a filled out example of

How to fill out instructions form 8606

How to Fill Out Instructions Form 8606:

1. Obtain form 8606: Start by obtaining form 8606, which can be found on the official website of the Internal Revenue Service (IRS) or by visiting a local IRS office. The form is used to report nondeductible IRA contributions and to calculate any taxable distributions from your IRA.
2. Enter your personal information: Begin by filling out your personal information at the top of form 8606. This includes your name, Social Security number, and the tax year for which you are filing the form.
3. Report any previous nondeductible contributions: If you have made any nondeductible contributions to your traditional IRA in previous years, you need to report these on lines 1-3. Use the information from your previous year's form 8606 to accurately fill out these lines.
4. Calculate your basis in your traditional IRAs: In lines 4-7, you will need to calculate the basis in your traditional IRAs. This refers to the total amount of nondeductible contributions you have made over the years. Subtract any qualified distributions or conversions from your basis and enter the remaining amount on line 7.
5. Report the fair market value of your traditional IRAs: On line 8, enter the fair market value of your traditional IRAs as of the end of the tax year for which you are filing the form. This information can usually be found on your year-end account statement.
6. Calculate the ratio: Divide the amount on line 7 (your basis) by the amount on line 8 (the fair market value). This will give you the ratio of your basis to the total value of your traditional IRAs.
7. Determine any taxable distributions: If you took any distributions from your traditional IRAs during the tax year, you will need to determine if they are taxable. Multiply the distribution amount by the ratio calculated in step 6 to determine the nondeductible portion of the distribution. Report this amount on line 19.
8. File your completed form: Once you have filled out all the necessary information on form 8606, make sure to review it for accuracy and completeness. Sign and date the form, and attach it to your federal income tax return. Keep a copy of the form for your records.

Who needs instructions form 8606?

1. Individuals with traditional IRAs: Anyone who has made nondeductible contributions to a traditional IRA or who has taken distributions from a traditional IRA may need to fill out form 8606.
2. Individuals with Roth conversions: If you have converted a traditional IRA to a Roth IRA, form 8606 may be required to report the taxable amount of the conversion.
3. Individuals with inherited IRAs: In certain cases, beneficiaries of inherited IRAs may need to use form 8606 to report distributions or conversions from these accounts.
4. Individuals subject to the required minimum distribution (RMD) rules: If you are subject to RMD rules and have made nondeductible contributions to a traditional IRA, form 8606 may be necessary to calculate the taxable portion of your distributions.

Overall, anyone who needs to report nondeductible contributions or calculate the taxable amount of distributions from a traditional IRA may need to fill out form 8606. It is important to consult with a tax professional or refer to the IRS guidelines to determine if this form is applicable to your specific situation.

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