Hi,
I encountered a simple yet complicated problem. Deadlocked.
I contributed $12000 in Mar 2020 to traditional IRA for both tax year 2019 and 2020, and immediately did a back door roth IRA conversion. I forgot to include a form 8606 to report the $6000 non-deductible contribution in my 2019 return.
Now I'm trying to amend my 2019 return by adding a form 8606 to claim this contribution so the basis for 2020 conversion would be right, but since I did not have distribution in 2019, I don't have a 1099-R for 2019, therefore I couldn't get to revisit my retirement plans section to generate a form 8606 in turbotax. Is there a way to manually add a form 8606 for a previous tax year amendment?
How can I add a form 8606 to my 2019 tax return in turbotax online to make the amendment?
Do I need to mail the form to IRS along with a 1040x (and if so, would that mess up my tax filing record since I filed the 2019 tax online but do the amendment by mail)?
Do I need to wait until IRS accept the amendment to file my 2020 return so that I can use the correct basis? What if I file my 2020 return as if I have a form 8606 for 2019?
Thank you!
Yes, you I need to mail the form to IRS along with a 1040X, and it will not mess up your tax filing record since you filed the 2019 tax online but do the amendment by mail.
No, you do not have to wait until IRS accepts the amendment to file my 2020 return so that I can use the correct basis. You can file your 2020 as if you have a form 8606 for 2019.
Yes, you can add a form 8606 for a previous tax year but you can't add it after it was filed or amended. You would have to amend (again) if you already amended.
To trigger the 8606 in TurboTax 2019 please follow these steps:
Here is a TurboTax article with more information about form 8606.
you might consider getting 2019 Form 8606 from IRS in fillable PDF format and doing it yourself.
the gurus here will tell you to sign and mail it in alone.
This tax expert in this thread claims you can file the 8606 as a standalone without an amendment. https://ttlc.intuit.com/community/retirement/discussion/i-neglected-to-file-my-non-deductible-ira-contributions-on-an-8606-for-many-years-is-there-anything/00/66653#:~:text=You%20can%20file%20delinquent%20Forms,reasonable%20cause%20for%20not%20filing.