I have a situation that I found many people to have an issue with. Last year I had the full $6000 contribution to Traditional IRA but I didn't deduct it from tax because my AGI exceeds the amount that I needed to make this deductible. So I should have filed 8606 but my CPA didn't.
Cue this year(2021), I made another $6000 contribution and then rolled it over to a roth IRA (backdoor roth). Now I am being charged tax for the past years amount since I didn't file the 8606 that I could have used to show the basis for tracked non-deductible Trad IRA contribution.
(I am using turbotax premier this year, last year I used a CPA).
My question is the following :
- I know we can file the 8606 form late and there may be a small penalty($50) that I am ok with. Can I do that right now and then do my taxes sometime at the end of this month ? Or should I wait a bit for that form to be processed but then I heard this form takes 4-8 months to be processed. So I definitely cannot wait that long.
Any suggestions ?
