Amend tax return for form 8606

[mudit]

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]

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

[mudit]

@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....

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]

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).  

[mudit]

Thank you very much! 

[mudit]

Thanks for all the help. I have one last question for you. 

Turbotax says I should amend my state (VA) tax return too.

Do I need to amend VA forms too?

If it is needed, my guess I should print 1040x, 8606 and VA 760 Amended form. 

Thanks!