Filed form 8606 incorrectly and did not report rothIRA conversion. Do I need to amend 1040 if I dont owe any new tax?

[taxes37]

Here is my situation. Contributed $5900 in October 2021 to tIRA and after a few days, converted $5800 (no idea why I didn't do the full amount) to rothIRA. I don't have any other IRA, so in theory, no taxes owed. Granted I got 2 cents interest paid by fidelity in November 2021 but I did not roll that in 2021. I also got a $100 free money from Fidelity (promotion) in November 2021. I then contributed $100 to tIRA for year 2021 in Jan 2022 and another $6000 to tIRA for year 2022 in Jan 2022. Then converted $6200.02 ($6100 contribution plus the $100 free money from fidelity) to rothIRA. In 2022, I owe taxes on around $100.02 I believe which I will deal in April 2023.

But, when filing 2021 taxes using turbo tax, I think I totally missed a few things. I only reported that I contributed $5800 to tIRA and didn't disclose anything about rolling it over to rorthIRA. My 8606 only has $5800 in boxes 1, 3, 14 and thats it. So the details on 8606 is incorrect and Part II in 8606 is also blank. 

I read through this thread - https://ttlc.intuit.com/community/retirement/discussion/i-neglected-to-file-my-non-deductible-ira-co... though I cant find an exact situation like mine, it seems like I can just send the corrected 8606 for year 2021 and don't have to really "amend" the tax return? Is that correct? If so, should I redo it on turbotax (i used desktop software) and then mail just the 8606? Or should I do it by hand/pdf and mail it? If I do the later, how to update the 8606 changes in turbotax so it knows the latest for 2022 taxes?

Thanks!

[dmertz]

In addition to Part II of your 2022 Form 8606 being incorrect, the amount from line 14 of that form is incorrect.  Since line 14 of your 2021 Form 8606 carries forward to line 2 of your 2022 Form 8606, rather than perpetuating the incorrect information which can produce incorrect calculations of tax liability on future Forms 8606, you should file a corrected 2021 Form 8606.  I would also file that amendment with Form 1040-X to show that there was no change in tax liability resulting from the correction.

After making the amendment with 2021 TurboTax, transfer into 2022 TurboTax the amended 2021 tax file when beginning your 2022 tax return.

[taxes37]

@dmertz , thank you so much for the quick response. I have never did an amendment before so please pardon my ignorance. What you described can all be done on turbo tax (desktop) itself? Then simply e-file it or mail it?

Also, for my spouse, we contributed $6000 to her tIRA in December 2021 for year 2021 and then converted $6000 to rothIRA in Jan 2022. Then contributed another $6000 to her tIRA in Jan 2022 then converted that as well to rothIRA in Jan 2022. Her form also looks similar to me (1, 3, 14 fields have $6000) and no Part II filled. This is ok and nothing needs to be done since the conversion happened only in 2022 and we will carefully report this when we file taxes in April 2023? Does that sound correct?

[dmertz]

Amending with TurboTax:  https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

The desktop version of 2021 TurboTax already includes the capability.

Since your spouse's Roth conversion did not occur until 2022, your spouse's 2021 Form 8606 is correct.  Any Roth conversion performed in 2022 is reportable on a 2022 Form 8606.

[taxes37]

@dmertz 

Thanks again. I went back and looked at my returns on turbotax. I obviously made a mistake of reporting 2021 tIRA contribution as $5900 which needs to be fixed to $6000. But, I did not miss out on reporting about the $5800 roll over. There is a 1099-R entry for $5800 thats reported as “Early Distribution”  which was accounted as “Taxpayer moved the money to another retirement account” and “Taxpayer rolled over all of this money”.

I am scratching my head why this still resulted in an incorrect 8606. Thoughts?

[fanfare]

both 1040-X and 8606 (relevant year) can be obtained in pdf-fillable format at IRS.gov

Note: when no dollar amounts are changing, you leave 1040-X lines 1-23 EMPTY.

mail to the address in the most recent Instructions for Form  1040-X.

@taxes37 

[dmertz]

In TurboTax, indicating that the amount was rolled over tells TurboTax that you deposited the money into a traditional IRA, not that you converted it to Roth.  In the desktop version of TurboTax, to indicate that you converted it to Roth you must indicate that you did a combination of rolling over, converting or cashing out, then indicate the amount converted to Roth.

[taxes37]

Thanks. Exactly what I missed. Shoot. Not that easy to find lol

[Peedee12]

Reset taxas