I submitted with a mistake - $5500 non-deductible contribution to Trad. IRA should be $0 contribution. What should I do to fix this?

[brianlam89]

I just filed my 2016 returns. I accidentally put down a $5500 contribution (between Jan and April 2017) to my Trad. IRA. I did not and do not plan to make this contribution. What should I do to fix this mistake? Does it even matter given that it is non-deductible?

[macuser_22]

Yes it matters if it was actually reported as non-deductible.

Was it reported as non-deductible? - was a 8606 form part of the tax return with the 2016 non-deductible amount on line 1?
Or was it reported as a deductible contribution on line 32 on the 1040 form (line 17 on 1040A)?

If a 8606, you do not need to amend, but only file a standalone 8606 to correct the improperly reported non-deductible contribution .

[brianlam89]

Thanks! It was reported on Form 8606 (NOT on line 32 of 1040).

I believe I need to submit a Form 1040X too. On Form 1040X, what exactly do I need to fill out on 1040X?

[macuser_22]

There is no reason to.  If you amend all you can do is remove the IRA contribution in the contribution section.  That will make it as if the contribution was never entered so a 8606 will not be part of the amended return.   Except for the missing 8606, nothing else would change.

But since you already sent an incorrect 8606, you need to send a corrected 8606 to undo the incorrect one with a zero on line 1, lines 3, 5 and 14 adjusted accordingly and attached to the amended return. Just mailing the 8606 will do the same thing.

Form:  <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f8606.pdf">https://www.irs.gov/pub/irs-pdf/f8606.pdf</a>
Instructions: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i8606.pdf">https://www.irs.gov/pub/irs-pdf/i8606.pdf</a>

[brianlam89]

thanks for the quick reply. just to be clear, in the 8606 instructions PDF, it says: " If necessary, complete a new Form 8606 showing the revised information and file it with Form 1040X."

but you are saying all I need to do is submit an amended 8606, and there is no need to file the 1040x along with it?

[macuser_22]

Re-read that.    If you *change* a non-deductible contribution to a *deductible* contribution then an amended return is required to report the new deductible contribution online 32 and recalculate the tax after the deduction.   You are not changing anything but removing the contribution never made.  Nothing was entered on the original 1040 and nothing would go on a new 1040X - only the 8606  changes.

[fanfare]

It doesn't matter that no amounts are changing on a Form 1040X. You would still file it  and use the Explanation field to say why you need to submit a corrected form 8606. Indeed, the Form 8606 is a form that is changing due to your amendment so attach that. That's the only form you need to send with 1040X.

Use Form 1040X to add or correct information on an already filed tax return.

[WillK]

If you already filed your return you will need to wait to see if it was rejected or accepted. If they were rejected you are able to login to your return to fix what you need to fix and fix the errors that caused the rejection and refile the return. If your returns were accepted, then you will need to file an amended return. You should not try to amend your return until the original return it has been fully processed and you have received your refund or your payment has cleared.
Amended returns do not “catch up” to your original return and replace them; they are processed as two separate returns.  
Amended returns have to be printed and filed by mail.  It can take the IRS up to 12 weeks or longer to process them.   If you are due a larger refund than on your original return, your amended return should only show the difference and you will receive a separate check for it.  If you owe money on your amended return, it will show only the new amount owed, you will have to mail a check with the return. You can check the status of your amended return by clicking here: https://www.irs.gov/filing/individuals/amended-returns-form-1040-x-/wheres-my-amended-return-1

 Click here for amending instructions: https://ttlc.intuit.com/replies/3288565