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Level 1
posted Jun 4, 2019 11:18:41 PM

I incorrectly put the total basis in Form 8606 for several years (2011 to 2016). Do I need to complete both Form 8606 and an Amended 1040 for EACH incorrect year?

In 2010: contributed to Traditional IRA for the first time.  The total amount is nondeductible. Entered in line 1 (nondeductible contribution) as $4000.  Entered in line 2 (total basis) as $0.

2012: contributed to Traditional IRA.  Total amount is nondeductible.  Entered in line 1 (nondeductible contribution) as $5000.  Entered in line 2 (total basis) as $0.

2013:  contributed to Traditional IRA.  Total amount is nondeductible.  Entered in line 1 (nondeductible contribution) as $5500.  Entered in line 2 (total basis) as $0.

2016: contributed to Traditional IRA.  Total amount is nondeductible.  Entered in line 1 (nondeductible contribution) as $5500.  Entered in line 2 (total basis) as $0.

Do I need to resubmit Form 8606 for 2012, 2013 and 2016? Do I also need to submit an amended 1040 even though it has no affect on my tax given it is a nondeductible contribution?

0 10 3091
10 Replies
Level 15
Jun 4, 2019 11:18:44 PM

I wouldn't do that. Just put the grand total in for all prior years, next time.

IRS says: keep all copies of Form 8606 in your records, indefinitely.

Level 15
Jun 4, 2019 11:18:45 PM

I agree with fanfare, you can wait til next year to do that.  When you do your next 8606, you will enter the correct amount for line 2. That will prompt TurboTax to prepare a statement  to explain the correction. This will be submitted as part of your next return. Be sure to keep copies of all those past year form 8606.

I assume you are making non deductible contributions because your income is too high to make a Roth contribution.   

I also assume you didn't use Turbotax(TT) in the past, as TT should have entered the correct amount on line 2 of form 8606.

New Member
Jun 4, 2019 11:18:46 PM

I have been using Turbotax forever and it has not updated my basis in non deductible Traditional IRA contributions since 2011, I just noticed this year.  Is it a glitch?

New Member
Jun 4, 2019 11:18:47 PM

Same here, Mark. I've used Turbo Tax Online from 2004 - 2017 and it always puts a big fat zero in the total basis box. I am making the correction this year and adding the explanation into TurboTax. I just don't know if it will help anything for 2018, since it appears to be a bug in the software.

New Member
Jun 4, 2019 11:18:49 PM

Same here. I just noticed the problem on this year's return, TT did not carry over after tax contributions from 2014, and 15, and 16 into form 8606 in the following year's filings. For my 2017 filing I've had to force the total basis number to include prior years, and wrote an explanatory note citing this TT bug. How do we notify TT of the issue and get them to fix it?

Level 1
Sep 13, 2020 7:40:49 PM

Hi,

I have the same problem,and I'm trying to learn how to fill form 8606 correctly.

Please what should the basis be for each year in line 2 for 2012, 2013, 2016?

I'll like to see your corrections,that way I'll know how to correct mine

Not applicable
Oct 6, 2020 12:15:28 PM

Same thing happened to me, my total basis was never updated in Turbotax even though I have used Turbotax from 2007 through 2019.

Level 15
Oct 6, 2020 8:08:04 PM

use 1040X to file a correct Form 8606. In Part III explanation, indicate that your submitted form corrects errors propagated  in prior years List those years.

 

Level 1
May 16, 2021 10:27:42 AM

I just noticed TT never updates the total basis and I messed up two years in a row. In 2020, I did convert all to Roth. Does it mean my total basis is now '0'?

Expert Alumni
May 16, 2021 11:00:46 AM

Yes. If you converted all traditional IRAs to ROTH, then you have no basis left in them.

 

@dutax2017