Hello MacUser_22,
Thank you for all your help!
I have tried the steps you have described below with amending my 2019 Tax return to account for Jan 2020 IRA contribution 7K and then Conversion to Roth IRA in March 2020. However, it keeps showing the message "Income too High to Deduct IRA" but I don't need to take a deduction.
I realized that I had some typos in my first post, so I am providing the info again below:
Here is the situation:
1) IRA has .01 cents as of 12/31/2019
2) Contribution made to IRA on 1/27/2020 for year 2019 with after Tax money
3) Roth conversion on 3/2/2021 all 7K
4) 1099-R for 2020 - box 1 7K, box2a 7K, 2b-Taxable Amt Not determined, box7 code=7 IRA/SEP/SIMPLE box checked
I didn't report the non-deductible deposit made to IRA in 2019 TurboTax as I don't see a 8606 for 2019 tax return.
Q1 -Do I need to amend 2019 tax return to get the basis corrected for use in 2020 tax return?
Q2 - If Yes, please, please provide detailed steps, how can I go back and update/Amend my 2019 Tax Return
Q3 - Once I get that corrected and see form 8606 generated for 2019 tx return, do I need to file full amended tx return or I can just file form 8606 only (with 1040-X as I saw someone suggested that)?
I am hoping this will correct my 2020 tax return situation, where I am getting this 7K considered as IRA distribution and making it a taxable amount.
Your help is much appreciated.
