Amend tax return for form 8606

Forum|Forum|2 years ago
April 4, 2024
12 replies
99 views

Hello,

I made a mistake while entering 1099-R on last year 2022 return. I classified it as Rollover where as it was a backdoor roth conversion.

Because of my income levels, it was a non-deductible contributions.

On form 1040, line 4b is 0. But form 8606 has wrong basis for IRA (line 14) and Part II of form ( for conversion) was blank.

When I figured it out, I tried amending my return. Upon correcting my mistake, i can see myy form 8606 shows correct numbers. Line 4b still 0.

Should I file 1040X and send new form 8606 ? Or should I do nothing as line 4b is 0 in both cases. Also, there is no change in tax liability.

Reason I ask, I am getting conflicting answers. Some people say since tax amount is not changing, I should not amend the return. And since I am not making same mistake in 2023 form 8606, my mistake will go away going forward.

Some said I should file 1040x and form 8606 just to keep everything clear.

Please advise.

Thanks!

DavidD66

Level 15

You should file an amended return with a corrected Form 8606. For information on amending go to: How to Correct Federal Tax Returns

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muditAuthor

Level 2

@DavidD66

Thank you for your response.

Would you be able to help with more questions about amended returns ?

Q 1 - I don't think i can efile my 2021 amended return. Turbotax premier desktop edition says TurboTax e-filling closed on October 17th, 2022.

Q 2 - TurboTax instructions says I should only send forms which have changed. So in my case, that means form 1040X and form 8606. No other document needed.

However IRS website says for Amended return, I should send all the same forms and schedules.

Link: https://www.irs.gov/filing/file-an-amended-return#:~:text=To%20amend%20a%20return%2C%20file,t%20have%20adjustments%20on%20them.

To amend a return, file Form 1040-X, Amended U.S. Individual Income Tax Return. You can use tax software to electronically file your 1040-X online.

Submit all the same forms and schedules as you did when you filed your original Form 1040 even if you don't have adjustments on them.

File Form 8879, IRS e-file Signature Authorization with your 1040-X.

You can file up to 3 amended returns for the same year.

File on paper if you're amending a return you originally filed on paper and Forms 1040 and Form 1040-SR, U.S. Return for SeniorsPDF before 2020, and Form 1040-NR, Nonresident Alien Income Tax ReturnPDF before 2021.

I am not sure which instructions ( IRS or TT ) to follow.

Thanks!

DavidD66

Level 15

MAil your amended return. Do not send all forms and schedules. All you need to send is the updated/amended Form 8606 and Form 1040-X. Based on your original question there won't be any changes to Form 1040 or any other forms or schedules. So, all you need is the new 8606 and the 1040-X which has an explanation for why you are amending (to correct Form 8606).

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mikemiester11

Level 2

Did you ever come to a full solution on this? In the context of doing regular annual backdoor Roth IRAs, I am realizing that my Form 8606 was prepared incorrectly for TY2023 as I am starting to work on 2024. Similar issues with basis being incorrect and the conversion step being completely blank.

What did you end up doing to resolve this issue?