Do I need to amend form 8606 (year 2012), if the previous years amount were not carried over? If so, what is the process?

[dmertz]

What reason did you have to file Form 8606 in 2012 (new nondeductible traditional IRA contribution, traditional IRA distribution, nonqualified Roth IRA distribution)?
Did you have reason to file Form 8606 for 2013 or later years?

[doggspigg]

Thank you for your response. Form 8606 was filed in 2010, 2011 and 2012; the nondeductible traditional IRA contribution carried over from 2010 to 2011, but did not carry over in 2012. Also, I did not file 8606 in 2013-2016, as there was no nondeductible amount (now I'm not sure if I should still file 8606; only to show total basis in traditional IRAs). I may file 8606 for 2017, so I'm hoping I can enter carried over amounts, from these previous years, at this time.

[dmertz · Accepted solution]

Although you have not indicated the reason that you filed the 2012 Form 8606, I'll assume that you did have reason to do so since you actually did file it, but it was prepared incorrectly since it omitted on line 2 the amount from line 14 of the 2011 Form 8606.

Yes, you should file a corrected 2012 Form 8606 since a correct amount is needed on line 14 to carry forward to your next-filed Form 8606.  If the 2012 Form 8606 was filed only to report a new nondeductible traditional IRA contribution made for 2012, this will simply be to correct line 2 which will result in a correction to line 14.  This corrected line 14 is what will carry over to your next-filed Form 8606, perhaps the one for 2017.  Assuming that your originally filed Form 8606 was filed with your 2012 tax return, you should probably file the corrected Form 8606 with Form 1040X.

If the 2012 Form 8606 was instead filed to calculate the taxable and nontaxable portions of a traditional IRA distribution, you'll still end up with corrections to lines 2 and 14, as well as other lines, and you'll need to file the corrected Form 8606 with Form 1040X.  However, since 2012 is generally a closed tax year for receiving any refund of excess taxes paid, you won't be receiving the refund that you calculate on Form 1040X.  As in the case with a new nondeductible contribution, the amount from line 14 of the corrected 2012 Form 8606 will carry forward to line 2 of your next-filed Form 8606.

[goyal_raj]

I have a similar issue where I did not show my IRA basis for 2018 and my 2019 8606 just showed the non deductible IRA contribution for that year. Should I send the amended form 8606 for 2019? Do I have to enclose 1040-X? There is no change on my 1040 as a result of this change.

And my 2018 IRA was deductible and 2019 was non deductible. Does that change anything when i fill form 8606 in 2020 in which i converted my traditional IRAs (deductible and non deductible) to Roth IRA?

Thanks,

RG

[MarilynG1]

@goyal_raj Since you filed a Form 8606 with your 2019 return reporting your non-deductible contribution, you probably don't need to file an Amended Return for 2019, although you can do so. 

Click this link for info on How to Amend a Prior Year Federal Return.

If you know your current non-deductible IRA basis, TurboTax should generate a Form 8606 for you in 2020 when you report your conversion to a Roth IRA.

Click this link for instructions for triggering Form 8606.

Here's an IRS link for Instructions for Form 8606. 

[goyal_raj]

Thanks for your reply.

My 2018 was deductible so that is why i think it did not appear on my 2019 8606. 

In 2020 i converted my deductible IRA from 2018 and non deductible form 2019 to Roth but i reported the basis only for 2019 (6000 dollars) and therefore it has calculated a tax payable for me on the deductible part plus earnings. Which I think is right. Do you agree?

[ThomasM125]

You would have to report as income in 2020 the deductible contributions you made, plus the income on that, plus the income on your non-deductible contributions to your traditional IRA that was converted to a ROTH IRA in 2020.