dmertz
Level 15

Retirement tax questions

"can I just go forward with the basis from 2020 when I file 2022"

 

No.  The fact that you filed an incorrect 2021 tax return does not affect the amount of basis that actually carries forward.  Even if you do not file an amended 2021 tax return to make the correction, you must prepare the 2021 Form 8606 to determine how much basis should have been applied to your 2021 distributions and to determine how much basis carries forward from 2021 to 2022.  You are not permitted to pick and choose which years to apply your basis.  Whatever amount of basis should have been applied on your 2021 tax return is simply lost if you fail to file the amendment to make the correction.

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