If you downloaded or printed the 2024 Instructions for Form 8606 prior to June 26, 2025, please note these corrections.
We are revising the 2024 Line 25c Worksheet on page 15 to better reflect the different basis allocation rules for Roth IRAs. The revised worksheet allows full use of basis increases from certain repayments to offset otherwise taxable Roth IRA distributions in tax year 2024.
If you used the previous version of the 2024 Line 25c Worksheet, you could amend your 2024 income tax return to reduce 2024 taxable Roth IRA distributions. If you choose not to amend that return, any unused basis from the repayment should be carried forward and reported the next time you file Form 8606 for a Roth IRA distribution.
The 2024 Line 25c Worksheet and the corresponding examples in the 2024 Instructions for Form 8606 are being updated to reflect the below revised worksheet.
2024 Line 25c Worksheet:
- Enter the amount from 2024 Form 8606, line 19.
- Subtract the amount from 2024 Form 8606, line 25b from the amount from 2024 Form 8606, line 25a.
- Enter the total qualified birth or adoption distribution, personal expense distribution, domestic abuse distribution, and terminal illness distribution repayments you made, within the 3-year repayment period, for the distributions on line 1.
- Subtract line 3 from line 2. If zero or less, enter -0-. Enter this amount on 2024 Form
8606, line 25c; and on 2024 Form 1040, 1040-SR, or 1040-NR, line 4b, as applicable. If the repayment was made after 2024, you may need to file an amended 2024 return.
- If line 3 is more than line 2, subtract line 2 from line 3. Include this amount as an adjustment on Form 8606, line 22, for the next year after 2024 you report Roth IRA distributions on Form 8606.