Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Adjustments to Income

IRA Contributions

Reporting IRA Deductions

The difference between the permitted contributions and the IRA deduction, if any, is the taxpayer's nondeductible contribution.

To designate and report an IRA contribution as nondeductible, taxpayers must complete Form 8606, Nondeductible IRAs. Form 8606 is beyond the scope of the VITA/TCE programs. If the taxpayer has nondeductible IRA contributions, refer the taxpayer to a professional tax preparer.

If a taxpayer does not report nondeductible contributions, all contributions to the traditional IRA will be treated as deductible. This means all distributions will be taxed unless taxpayers can show, with satisfactory evidence, that they made nondeductible contributions.

Form 1040, line for entering IRA deduction.
Form 8606

Form 8606