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Level 2
posted Apr 3, 2022 11:46:29 PM

Should I base 2021 taxes on amended 2020 that is still processing? Or use original 2020 filing?

While preparing to start my 2021 taxes I realized I forgot to include a 1099-R for a 401k "in plan" conversion of after-tax money to a 401k Roth when I did my 2020 taxes.   Part of this conversion was taxable due to gains on the after tax contributions which, of course, impacts my 2020 return such that I will need to amend 2020.

 

Should I do the 2020 amendment and start my 2021 taxes based on that amendment?  It will go in the mail only about a week or two before my 2021 taxes are due (which I will e-file) and I will owe both federal and state a few dollars extra.  Will this cause confusion and problems with the IRS since my 2020 amendment will not yet be processed when they receive my 2021 return?  

 

Or, should I base my 2021 taxes on my original 2020 filing and then later amend 2021 if necessary due to the 2020 amendment?

 

I suppose the third alternative is to put together two packages (amended 2020 and 2021) and snail mail them together with a note explaining that 2021 is based on the amended 2020 filing.

 

Any expert advice would be greatly appreciated. 

 

Billy

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1 Replies
Expert Alumni
Apr 4, 2022 3:58:51 AM

Base your 2021 tax return on correct information. That is, use your amended return as a starting point. There may be some confusion, but the IRS is used to this type of thing.