2019/01 - 1st time made a $5500 contribution to T-IRA as nondeductible for tax year 2018
2019/02 - did backdoor Roth IRA conversion of $5500.
2019/03 - made a $6000 contribution to T-IRA as nondeductible for tax year 2019
2019/03 - did backdoor Roth IRA conversion of $6000.
Just realize now that in my 2018 return, I mistakenly reported $5500 Roth IRA direct contribution instead of nondeductible T-IRA contribution hence Turbo tax didn't trigger form 8606.
My 2018 AGI was $115,000 which was under the $120,000 income limitation threshold for that year. Theoretically my 2018 tax return reported as direct Roth IRA contribution is legitimate, but it was not the way I did the contribution in my Fidelity IRA accounts. It is now beyond 3 years timeline of amendment. Anyway to fix this error ? Any consequences for not fixing it ?
Thanks
Yes, you can still file a missing Form 8606 for 2018 on a standalone basis, meaning that you can file it without amending your tax returns. There can be a penalty of $50 for not filing Form 8606 on a timely basis, but the penalty can be waived if you can show reasonable cause for not filing.
Please see IRS Form 8606
You can go ahead and file your 2021 return as long as you have sent those amendments.
If you prefer to file an extension then please see How do I file an IRS extension (Form 4868)
Yes, you can still file a missing Form 8606 for 2018 on a standalone basis, meaning that you can file it without amending your tax returns. There can be a penalty of $50 for not filing Form 8606 on a timely basis, but the penalty can be waived if you can show reasonable cause for not filing.
Please see IRS Form 8606
Thanks for the reply. I also made mistakes on my 2019, 2020 F8606, mistakenly put balance as total basis (part 1, line 2). I will also amend for those years. My total basis should be zero as I have done backdoor conversion every year. With this, should I request for 2021 extension, wait for IRS to complete the amendment, then file 2021 return ? Or any concern if I go ahead to file 2021 F8606 with zero basis, before the amendments ?
Thanks
You can go ahead and file your 2021 return as long as you have sent those amendments.
If you prefer to file an extension then please see How do I file an IRS extension (Form 4868)