With the extension til July for contributing I decided last year to go back and max out my 2019 after tax IRA contributes and convert that to a roth IRA. I had originally contributed 1500 nondeductible to my IRA and rolled that into a RothIRA during the 2019 year and that is reported on my 8606 form for 2019. After filing with turbotax in early 2020, I contributed this additional 5500 (for a total of 7000) to the IRA and also converted that to my roth IRA. Now how do I register that w/ the IRS - refile 8606 stand-alone with the new totals? I don't need to amend my 1040 for just amending this form or do I?
How do i tell turbo tax the 5500 on my 2020 1099-R was from 2019 nondeductible contribution or update that info in my turbotax history so it doesn't tax that 5500 as it is doing now?
So here's what I did (or am doing):
Log into turbotax and scroll down on the main window to Your tax returns & Documents and pull down the menu to select the 2019 year.
Click Amend (Change) 2019 year.
Under Deductions and Credits there is a Traditional and Roth IRA Contributions - go there and adjust the traditional contributions to the right number and there is a question how much was contributed in 2020 to the 2019 contribution limit so make sure that is right.
Go through all the checks and at the end you’ll get a new TaxReturn.pdf with an updated 8606 form that shows the new numbers and has the additional funds as a Basis for 2019 and prior years listed on link 14.
I printed the pages w/ the updated 8606 form only, added the address and signature/date.
Send that to the 1040x address for my state from here: https://www.irs.gov/filing/where-to-file-paper-tax-returns-with-or-without-a-payment
Or I could have just directly filled out a new 8606 form here - https://www.irs.gov/pub/irs-prior/f8606--2019.pdf
and sent that in via mail.
Back to 2020 turbotax return, on income under the Retirement 1099-R reporting information, Edit that section and go through all the data again. When I got to the question that says :
Any Nondeductible Contributions to xxxxxxxx's IRA?
I checked yes I made and tracked nondeductible contributions to my IRA.
On the next page "Let's Find Your IRA Basis" adjust the basis up to the corrected amount from the new 8606 form (the Dec 31, 2019 date on that question was throwing me off but I think it means the basis from the 2019 tax return form 8606.
That fixed my taxes owed number.
I'll check my 2020 8606 form at the end to make sure it is correct and not going to double count anything but this looks right so far.