Hello,
I have used a CPA to file my tax returns for past several years, and decided to switch to just doing taxes on my own using turbotax. Turns out this was a good thing because I noticed there were lots of errors on my prior years tax returns.
- First time I had recharacterization was in 2020. I think that one was most likely fine the error was minor and not material.
- The following year 2021, I had another recharacterization, but this one it appears my broker sent the full recharacterization amount as a distribution with box stating cost basis not avaiable, but my CPA just took the full amount as a recharacterization (which ended up in over taxation to me).
- Then in 2023, I had another rechracteization, but this was completely missed by my CPA it was not even on my tax return. However, I think the taxable amount on it is probably pretty low given that I have not been taking deduction on the Traditional IRA contributions due to income limits.
- In 2024 I had another recharacterization. Again i think my taxable basis is very small, but my brokerage firm did send the 1099 with full distribution amount and I need to recalculate the basis.
My question is with all of these past errors, can i just file 2024 tax return with "trued up" tax basis (I assume the taxes I paid on 2021 outwieghts any tax liabilities i would have owed in the subsequent years)? And is the best way to do this by just overriding the 1099 data that TT imported? Thank you for your help in advance!
