Updated October 18, 2026. Quick answer: Part III figures the taxable part of Roth IRA distributions. Line 19 is your nonqualified Roth IRA distributions for 2025, and line 20 is qualified first-time homebuyer expenses. The instructions list distributions that stay off line 19.
What Part III asks for
The instructions open Part III with “Complete Part III to figure the taxable part, if any, of your 2025 Roth IRA distributions.” The form says to “Complete this part only if you took a distribution from a Roth IRA in 2025.”
Line 19: what goes on it
The caption reads “Enter your total nonqualified distributions from Roth IRAs in 2025, including any qualified firsttime homebuyer distributions, and any 2025 retirement plan distributions whose repayments are treated as rollovers.” For reading the distribution form you received, see the 1099-R box 1 page.
What to leave off line 19
The instructions begin “Don’t include on line 19 any of the following.” The first three items are “Distributions that you rolled over, including distributions made in 2025 and rolled over after December 31, 2025 (outstanding rollovers).” then “Recharacterizations.” and “Distributions that are a return of contributions under Return of IRA Contributions, earlier.”
The list also includes “Qualified charitable distributions (QCDs).” and “Distributions that are incident to divorce.” Read the full numbered list in the instructions before you enter a number.
If nothing is left, the instructions say “If, after considering the items above, you don’t have an amount to enter on line 19, don’t complete Part III; your Roth IRA distribution(s) isn’t taxable. Instead, include your total Roth IRA distribution(s) on 2025 Form 1040, 1040-SR, or 1040-NR, line 4a.”
Line 20: first-time homebuyer expenses
The caption reads “Qualified firsttime homebuyer expenses (see instructions). Do not enter more than $10,000 reduced by the total of all your prior qualified firsttime homebuyer distributions”. The instructions say “If you had a qualified firsttime homebuyer distribution from your Roth IRA and you made a contribution (including a conversion or a rollover from a qualified retirement plan) to a Roth IRA for any year from 1998 through 2020, enter the amount of your qualified expenses on line 20, but don’t enter more than $10,000 reduced by the total of all your prior qualified firsttime homebuyer distributions.” For the first-time homebuyer exception to the additional tax, see the Form 5329 exception code 09 page.
Where it goes next
Line 21 subtracts line 20 from line 19, so both lines feed the rest of Part III. Continue with the lines 21, 22 and 23 page. The sibling page for the traditional IRA side of the form is the line 15c page.
Edition and line numbers
This page reads the 2025 Form 8606 and its 2025 instructions, the current files irs.gov served on 2026-10-18. They are the files for the tax year 2025 return, filed in 2026. The form says “Attach to 2025 Form 1040, 1040-SR, or 1040-NR.” Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently. The full form is explained on the Form 8606 page.
Common mistakes
- Including a rollover on line 19. The instructions list “Distributions that you rolled over, including distributions made in 2025 and rolled over after December 31, 2025 (outstanding rollovers).” among the items to leave off.
- Completing Part III when no amount belongs on line 19. The instructions say “don’t complete Part III; your Roth IRA distribution(s) isn’t taxable.”
- Entering homebuyer expenses above the cap. The instructions say “don’t enter more than $10,000 reduced by the total of all your prior qualified firsttime homebuyer distributions.”
Related: Form 8606, 1099-R box 1, Form 5329 exception code 09, and Roth IRA contribution limit.
Sources
- Instructions for Form 8606, Nondeductible IRAs (2025): https://www.irs.gov/pub/irs-pdf/i8606.pdf
- Form 8606, Nondeductible IRAs (2025): https://www.irs.gov/pub/irs-pdf/f8606.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.