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Level 2

Form 8606 Updates

I just realized my mistake in not filing form 8606 in the past. In December 2017, I made a $201 nondeductible contribution to my Traditional IRA. I neglected to file from 8606.

 

A few days later at the beginning of 2018, I converted the money to roth. I then made several more nondeductible contributions to my traditional IRA totaling $2,399 for the year, and I converted everything over. I received a 1099-R for 2018, listing the total converted in the year, of $2,600.69. I also neglected to file Form 8606.

 

My understanding to fix this mess, is that I need to fill out Form 8606 for 2017, simply doing the following:

Line 1: $201, Line 2: 0, Line 3: $201, Line 14: $201. And that's it. Mail that in, and I don't have to amend 2017.

 

For 2018, Line 1: $2399, Line 2: $201, Line 3: $2600, Line 4: 0, Line 5: $2600, Line 6: 0, Line 7: 0, Line 8: $2600.69, Line 9:$ 2600.99, Line 10: .99973, Line 11: $2600, Line 12: 0, Line 13: $2600, Line 14: 0, Line 15a-c: 0, Line 16: $2600.69, Line 17: $2600, Line 18: .69 cents

 

Question 1) Do the lines on the Forms 8606 for 2017 and 2018 above look correct?

Question 2) Do I need to file an amended return for 2018? I have .69 cents taxable income from Line 18. Or can I simply submit the 8606 for 2018 as well. Thanks!!!

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Expert Alumni

Form 8606 Updates

If it makes you feel better, you can file an amendment for 2018 as well. The IRS considers less than $1 to be "de minimis", other words, the amount is so small, it is not worth the time and energy to report it.

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Expert Alumni

Form 8606 Updates

No, you don't have to amend your 2017 or 2018 tax returns. You can just file the Forms 8606 for each year. Be sure to sign it on page 2 and mail it in to the same address you would use for a Form 1040. 

 

Your figures are correct, based on what you told me. I don't think that the IRS will require you to add the .69 to your income. 

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Level 2

Form 8606 Updates

Thank you for the advice. Just to make 100% certain, this is what I'm reading onthe 2018 instructions for From 8606:

 

"Line 18
If your entry on line 18 is zero or less,
don’t include the result on Form 1040,
line 4b; or Form 1040NR, line 17b.
Include the full amount of the
distribution on Form 1040, line 4a; or
Form 1040NR, line 17a."

 

Therefore, wouldn't I want to file a 1040X, with $2600.69 on Line 4a, and $1 (the .69 cents rounded up) on Line 4b? This being the case, of my taxable income rising by $1?

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Expert Alumni

Form 8606 Updates

If it makes you feel better, you can file an amendment for 2018 as well. The IRS considers less than $1 to be "de minimis", other words, the amount is so small, it is not worth the time and energy to report it.

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Level 2

Form 8606 Updates

Thank you Julie! I'll trust your opinion, being a tax expert. I'll mail out the 8606, and hope they simply accept it and move on.  Thank you!

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Expert Alumni

Form 8606 Updates

Thanks!

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