How to fix my previous year basis for traditional IRA?

Forum|Forum|7 years ago
June 1, 2019
2 replies
0 views

My 2016 traditional IRA basis is wrong.

I entered the correct value, and turbo tax say "the IRA basis we transferred from 2016 is different from the basis entered. Include a brief explanation of why your IRA basis changed with your return"

Is this enough? is the explanation also sent to IRS?

Or do I need to fix "amend" last year return to correct my trad IRA basis?

TurboTax Premier Windows

dmertz

Level 15

The answer depends on whether or not your error in reporting the basis on your 2016 tax return affected the taxable amount of any 2016 traditional IRA distributions or Roth conversions. If it did, you must file an amended 2016 Form 8606 along with Form 1040X. Even if you did not have any traditional IRA contributions or Roth conversions in 2016, filing an amended 2016 Form 8606 with Form 1040X would be the most proper way to make the correction since it explicitly shows that your 2016 tax liability is unaffected.

If you file a corrected 2016 Form 8606, you would then provide to TurboTax as your basis carried in from 2016 the correct amount from line 14 of the amended 2016 Form 8606 and not provide any explanation for basis adjustment with your 2017 tax return.

If you do provide an explanation with your 2017 tax return, it will be included in your filing.

macuser_22

Alumni - Champ

Amended returns can only be mail filed. There is no rush to amend since amended returns can take up to 4 months to process.

It is suggested that it be mailed certified with return receipt (or other tracking service) to verify that the IRS receives it.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed">https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed</a>

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/3288565">https://ttlc.intuit.com/replies/3288565</a>

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

Nellienell1979

Level 2

How do I amend my 2017 w2s

KarenM90

Level 11

I assume you are referring to changing your 2017 W2 amounts in Turbo Tax. In order to do that, you will need to amend your tax return.

To Amend your return in Turbo Tax Online follow these steps:

1. Sign in to your Turbo Tax Account

2. Scroll down to Your tax returns and documents and select Amend (change) 2017 return, then Amend using Turbo Tax Online.

3. Select the reason you are amending and Continue

4. Answer the questions about your Federal return then begin amending your State return when it says "Lets get started on your state taxes...." (Please note that you only need to make changes to the areas needed - ie adding the additional W2 - you will not need to change any other areas of the return.

It does take up to 12-16 weeks for more for Amended returns to be processed.

If your W2's, issued by your employer(s) were incorrect, you will need to contact the employer and request that the incorrect information be corrected and a "Corrected" W2 be issued, then you can amend that return using Turbo Tax.

Here is a link with more details about amending a prior year tax return: Amending a Prior Year Tax Return

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"