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Anonymous
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TurboTax not picking up basis from amended return with updated Form 8606

When preparing 2020 taxes, I realized that Form-8606 from my 2019 return was inaccurate - specifically, I didn't enter my 2019 contribution for the year which I contributed in 2019, but converted to Roth in Jan 2020.    To fix this, I amended the 2019 return from within TurboTax to fix Form-8606,  and there was no change in total tax due for 2019. 

 

However, when going through the 2020 questionnaire   I now entered my (updated) total tax basis from the amended 2019, and TurboTax still says  "Include a brief explanation of why your IRA basis changed with your return".  

 

Questions: 

(1) Shouldn't this no longer be the case since I have amended the return ? Do I need to explicitly ask TurboTax somehow to review the amended return ? 

 

(2) Do I need to still provide the brief explanation ? I'm concerned that this would be confusing to IRS since I've already amended the 2019 return, and the basis should now match what's entered for the 2020 return 

 

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Accepted Solutions
DanaB27
Expert Alumni

TurboTax not picking up basis from amended return with updated Form 8606

Since amended the return after you started your 2020 return this update will not get carried over.

 

Yes, you can still enter a short explanation "Amended 2019 return in 2021 to report the correct basis on Form 8606 of $xxxx while preparing 2020 tax return."

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1 Reply
DanaB27
Expert Alumni

TurboTax not picking up basis from amended return with updated Form 8606

Since amended the return after you started your 2020 return this update will not get carried over.

 

Yes, you can still enter a short explanation "Amended 2019 return in 2021 to report the correct basis on Form 8606 of $xxxx while preparing 2020 tax return."

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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