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Normally, taxation is quite cumbersome. The importance of the event puts some stress on the individual, and completing the form can be challenging. Each character in the Form 8606 for 2025 matters at such a crucial moment, so completing a printed form may take much more time and effort than an electronic one. To make this process more efficient, use DocHub and complete your tax year effortlessly.

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Go to .irs.gov/Form8606 for instructions and the latest information. Complete this part only if one or more of the following apply. You made nondeductible contributions to a traditional IRA for 2024.
If the IRA contributor does not have a workplace plan and their spouse does, the 2024 limit starts at $230,000, and no tax deduction is allowed once the contributors income docHubes $240,000.
Traditional IRA Deductions vary ing to your modified adjusted gross income (MAGI) and whether or not youre covered by a retirement plan at work. If you (and your spouse, if applicable) arent covered by an employer retirement plan, your traditional IRA contributions are fully tax-deductible.
Use Form 8606 to report: Nondeductible contributions you made to traditional IRAs. Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs. Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.
Failure to file Form 8606 for a distribution could result in the IRA owner (or beneficiary) paying income tax and the additional 10% early distribution penalty tax on amounts that should be tax free. In addition, in some circumstances, there are fines associated with not filing Form 8606.
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Whether or not you can make deductible contributions to a traditional IRA depends on a few factors. You must: Fall below the threshold for modified adjusted gross income (MAGI) Have earned income (wages or self-employment income)
A deductible IRA can lower your tax bill by allowing you to deduct your contributions on your tax return - you essentially get a refund on the taxes you paid earlier in the year. You fund a nondeductible IRA with after-tax dollars. You cannot deduct contributions on your tax return.
Any money you contribute to a traditional IRA that you do not deduct on your tax return is a nondeductible contribution. You still must report these contributions on your return, and you use Form 8606 to do so.

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