Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Powerguru
Level 2

Incorrect basis in form 8606 for tax year 2007

For tax year 2007, my contribution to non deductible IRA was $3K and it was first year I ever contributed to a IRA. I have never contributed after that until this year 2019 and doing Roth conversion. I checked my 2007 form 8606 and it says $4K for non deductible contributions and $2k as basis. So my prior years total basis is $6000. Which is incorrect. It should be $3K in form 8606 for 2007. 

i never took any distribution. 

how do I correct this? 

thanks, 

powerguru

2 Best answer

Accepted Solutions
dmertz
Level 15
Intuit Approved!

Incorrect basis in form 8606 for tax year 2007

Yes, the corrections that you propose are correct.  And yes, you should include an explanation statement with your amended Form 8606 [not 5329 as I originally typed].

 

Since you are correcting a previously filed Form 8606, mail the corrected 2007 Form 8606 to the same address that to which you would send Form 1040-X.  For someone living in NJ that would currently be to Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999-0052.

 

https://www.irs.gov/pub/irs-prior/f8606--2007.pdf

View solution in original post

Powerguru
Level 2

Incorrect basis in form 8606 for tax year 2007

Hello,

 

Thank you for your reply. Do I need the amended Form 5329? I never took any distribution from any IRA. 

 

So as I understand the envelope to

 

Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999 – 0052

 

should contain : 

 

1. Updated Form 8606 (For tax Year 2007 version) with correct basis and correct contribution.

2. A cover letter with explanation as to what is corrected from the originally filed Form 8606 for tax year 2007. 

 

Thank you so much, 

View solution in original post

6 Replies
dmertz
Level 15

Incorrect basis in form 8606 for tax year 2007

Please elaborate on what amounts are on what lines of the 2007 Form 8606 and what amount is on line 32 of 2007 Form 1040 or line 17 of 2007 Form 1040-A.

 

Have you examined your tax returns for years 1998 through 2006 for any Forms 8606?

 

It seems like your 2007 Form 8606 is showing that you made a $2,000 nondeductible contribution for some year 1987 through 2002 and you later made a $4,000 nondeductible contribution for 2007.  The maximum IRA contribution for 2007 for someone under age 50 was $4,000, so it makes me wonder why your nondeductible traditional IRA contribution for 2007 would have been only $3,000, if that's true.  The limit was $3,000 for years 2002 through 2004. and the limit was $2,000 for years 1983 through 2001 although nondeductible contributions were not permitted until 1987.

 

If your 2007 Form 8606 is truly incorrect you would file an amended 2007 Form 8606 to correct it.  You should be able to file it stand-alone.

Powerguru
Level 2

Incorrect basis in form 8606 for tax year 2007

Thank you for the reply. I know I didn’t contribute to the max in 2007. I was not sure if I wanted to contribute anything towards retirement. I was young and stupid.

 

I have yearly statements for 2007 and 2008 from troweprice which shows a total of $3K contribution towards IRA for the tax year 2007. I am still not sure why the person at H&R Block put $4K as contribution and $2K as basis. I opened my one and only IRA account in 2007. 

 

 Lines on 8606 for 2007 as below   No 8606 filed prior to that. 

1. 4K

2. 2K 

3. 6K

14. 6K

 

 There is nothing on Line 32 on 1040 for 2007. 

so I just file the same form for the year 2007 (version of 2007 and not 2018 version correct? ) with following numbers? :

 

1. $3K

2. $0

3. $3K

14. $3K

 

 do I provide an cover letter or something. And what address should it go to?  I live in NJ. 

thank you. 

 

dmertz
Level 15
Intuit Approved!

Incorrect basis in form 8606 for tax year 2007

Yes, the corrections that you propose are correct.  And yes, you should include an explanation statement with your amended Form 8606 [not 5329 as I originally typed].

 

Since you are correcting a previously filed Form 8606, mail the corrected 2007 Form 8606 to the same address that to which you would send Form 1040-X.  For someone living in NJ that would currently be to Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999-0052.

 

https://www.irs.gov/pub/irs-prior/f8606--2007.pdf

View solution in original post

Powerguru
Level 2

Incorrect basis in form 8606 for tax year 2007

Hello,

 

Thank you for your reply. Do I need the amended Form 5329? I never took any distribution from any IRA. 

 

So as I understand the envelope to

 

Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999 – 0052

 

should contain : 

 

1. Updated Form 8606 (For tax Year 2007 version) with correct basis and correct contribution.

2. A cover letter with explanation as to what is corrected from the originally filed Form 8606 for tax year 2007. 

 

Thank you so much, 

View solution in original post

dmertz
Level 15

Incorrect basis in form 8606 for tax year 2007

Sorry, I meant to type Form 8606, not 5329.  I've fixed that.

Powerguru
Level 2

Incorrect basis in form 8606 for tax year 2007

Thank you!

Dynamic AdsDynamic Ads
Privacy Settings
v