Hi there,
I discovered that I (or TT) did not fill in Line 1 on Form 8606 in my 2019 1040 filing, but I did make a non-deductible contribution for 2019 prior to 2020's filing deadline. As a result, my basis is incorrect for 2020.
For context, my basis each year consists entirely of the previous year's non-deductible contribution; I have no outstanding deductible contributions or balances otherwise (I do a backdoor Roth conversion in the current year for the previous year's contribution amount, returning my basis to zero until the next contribution).
When doing my 2020 filing in TT, I was able to enter/override the basis amount, and TT asked me to state a reason for the adjustment, to which I entered "I neglected to enter our non-deductible contribution for 2019."
Since an 8606 was filed with our 2019 return, albeit with an incorrect basis amount, do I need to re-file it for 2019, or will TT generate the necessary documentation for my 2020 return that will satisfy the IRS?
If I do need to re-file the 8606 for 2019 manually, does that also imply that I would need to file a 1040-X as well through TT to amend my 2019 filing to include that info, if I'm just doing it to update the basis amount?
TIA
Yes, you will have to amend your 2019 to correct Form 8606. You will send Form 1040X with Form 8606 to the IRS.
Please see How do I amend a 2019 return in TurboTax? for instructions.
Yes, you will have to amend your 2019 to correct Form 8606. You will send Form 1040X with Form 8606 to the IRS.
Please see How do I amend a 2019 return in TurboTax? for instructions.