How do I enter a backdoor Roth IRA conversion if my conversion contains contributions made in 2021 for both 2021 and 2020

[VincentSun]

Thank you.

Line 1: 6000

Line 2: 6000

Line 3: 12000

Line 4: 6000

Line 5: 6000

I might be doing something wrong? 

DanaB27

[VincentSun]

For 8606 for 2020 amend.

Line 1: 6000

Line 2: 0

Line 3: 6000

Line 14: 6000 (should it be 6000? It should be convered to Roth IRA entirely)

Not sure which steps I did incorrectly.

Thank you. @DanaB27 

[DanaB27]

It seems that you entered that you made contributions from January 1, 2022, through April 18, 2022, for 2021. I believe this isn’t the case for you since you stated you made the contributions in 2021 for 2020 and 2021. Please correct it in the IRA contribution interview:

1. Click on "Search" on the top right and type “IRA contributions” 
2. Click on “Jump to IRA contributions"
3. Select “traditional IRA”
4. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
5. Enter the amount you contributed but don't enter anything under contributions made for 2021 from January 1, 2022, through April 18, 2022.

Yes, your 2020 Form 8606 looks correct. You made the conversion in 2021 not 2020.

@VincentSun

[VincentSun]

Thank you. You are exactly right. But after I changed it, 8606 form becomes 

Line 1: 6000

Line 2: 6000

Line 3: 12000

Line 5: 12000

Line 13: 8000 - where does this come from since line 11 and 12 are empty

Line 14: 4000

Line 16: 12000

Line 17: 8000

LIne 18: 4000 ----- taxable amount :(

@DanaB27 

[DanaB27]

It might be helpful to see your file. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"  
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

 We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

The instructions for TurboTax Online:

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

@VincentSun

[VincentSun]

I think I figured it out after I tried to remove it and then do it again. 

Basiacally, there is one step to ask for 'your value of all your traditional, SEP, and SIMPLE IRAs on December 31, 2021' and I enter it 0 this time. It seems was caching the previous value somewhere which was causing above inconsistency. 

Thank you so much. I think I should be able to file it today.

[Jenny011]

what should the end result of my 2020 1040x and 8606 look like? I am still waiting on my program but would be helpful to know the end result so I know I did it right. Thank you so much in advance!!

@DanaB27 

[Jenny011]

Ok, I have now located my 2020 TurboTax software. But I do not see my return that I filed. I have a pdf saved for my record and it is unable to open. Have you or anyone encountered this before?? How else can I amend my 2020 tax return? 

@DanaB27 

[VincentSun]

In terms of the 2020 amended 8606, does 1040x need to be included? For reference - https://ttlc.intuit.com/community/after-you-file/discussion/irs-request-for-1040x-copy-after-late-fi...

Thank you 

@DanaB27 

[DanaB27]

It depends if you had deducted the traditional IRA contribution before on Schedule 1, line 19. If not and therefore nothing changes on your return, then you can send Form 8606 as a standalone form. If the IRS wants Form 1040-X with it, they will request it.

@VincentSun

@Jenny011 If you used TurboTax Download then you should have the tax file saved on your return. If not, then you would have to recreate the 2020 tax return exactly as filed to be able to amend it.

Did you enter the IRA contribution at all on your 2020 tax return? Do you have an entry on Schedule 1 line 19 (IRA deductions)? If not, then you could just file out the 2020 Form 8606 and mail it to the IRS. You can download the 2020 Form 8606 and Instructions here.

2020 Form 8606

Line 1    6,000

Line 3    6,000

Line 14  6,000

[sunswei]

@DanaB27 I have exactly the same concern and issue in my 2021 tax return which I have already efiled.

I contributed both 2020's and 2021's 6000 into ira in 2021, then converted them to Roth ira. So in 2022, I received 12000 in 1099-R. At the end of 2021, my ira balance was 0.

In my 2020 tax return, I reported that I contributed 6000 during 2021. And my 8606 of 2020 only showed
1. 6000,

3. 6000,

14. 6000 
Then all other fields are empty. (This makes me worry because it doesn't show I converted it to Roth IRA in Part II).

In my 2021 tax return which I may need to amend, the 8606 showed
1. 6000

2. 6000

3. 12000

14. 12000
This seems incorrect, right? It also doesn't show they are converted into Roth ira.

I read all information in this thread. Could you confirm these are what I should do?
1. Amend 2020 tax return, report the nondeductible contribution AND 6000 conversion?
2. Amend 2021 tax return, report 1099R as 6000 in amount instead of 12000(what was in the form). 
In this way, I can split the conversion into separated years, 2020 and 2021.
Please advice.

[sunswei]

@DanaB27 Or  I may be over-concerned. 

I just keep 2020 tax return as it is since I reported the contribution was made in 2021.

Then I only need to amend 2021 return to make sure 8606 form is correct, as well as 1040(not rollover in 4a 4b).

The expected 8606 should be 

1. 6000

2. 6000

3. 12000

13. 12000

14. 0

16. 12000

17. 12000

18. 0

Right?  Thanks for your concern and reply. Highly appreciate.