I am filing my 2024 taxes using TurboTax Premier (online) and encountered a question about my Traditional IRA basis as of 12/31/2023. While reviewing my past tax filings, I noticed a potential issue with my 2020 tax return, specifically Form 8606.
Background of My 2020 IRA Contributions & Tax Filing
2020 Tax Filing Status: Married Filing Jointly
2020 Adjusted Gross Income (AGI): $203,122 (from Form 1040, Line 11)
Covered by a Retirement Plan at Work?: Yes, I was. My wife was not.
MAGI for Roth IRA Purposes: Same as AGI ($203,122)
Roth IRA Contribution Limit for 2020: $1,730 (Correctly contributed this amount)
Deadline to Make 2020 IRA Contributions: April 15, 2021
Actual Contribution Dates & Issues:
| Date | Notes | From | To | Amount | Deductible? |
| 4/19/2021 | Contribution for 2020 | Bank of America | Traditional IRA | $4,270 | Marked as Deductible |
| 4/19/2021 | Contribution for 2020 | Bank of America | Roth IRA | $1,730 | N/A (Direct Roth Contribution) |
| 4/28/2021 | Backdoor Conversion | Traditional IRA | Roth IRA | $4,270 | N/A (Converted) |
Key Mistake: I contributed $4,270 to a Traditional IRA for 2020 after the deadline (April 15, 2021), which means it should have counted for 2021 instead. However, I mistakenly treated it as a 2020 contribution on my 2020 Form 8606.
Form 8606 Issue:
Lines 1, 3, and 14 were incorrectly entered as $6,000.
I now believe these should have been $0, since my AGI was too high for a deductible contribution, and I had no true non-deductible basis from 2020.
Later Years & Traditional IRA Basis
2021: No IRA contributions (Traditional or Roth).
2022: $6,000 backdoor Roth IRA contribution (contributed and converted in 2022).
2023: $6,500 backdoor Roth IRA contribution (contributed and converted in 2023).
2024: $7,000 backdoor Roth IRA contribution (contributed and converted in 2023).
12/31/2021 Traditional IRA Balance: $0.01
Since my Form 8606 for 2020 was wrong, I am concerned about its impact on 2021, 2022, 2023, and 2024 filings, especially regarding my Traditional IRA basis and backdoor Roth IRA conversions.
Questions:
How do I correct my 2020 Form 8606?
Should I file an amended return (Form 1040-X) for 2020?
If yes, what specific changes should I make to Form 8606?
Do I need to adjust my tax filings for:
2021, 2022, 2023, and 2024 due to this error?
If so, how should I approach these corrections?
Can this be done using TurboTax Premier (online version)?
Any guidance on how to fix my 2020 return and ensure my 2024 return is correct would be greatly appreciated!
Can this be done while I am doing my 2024 taxes using TurboTax online premier version?
