TurboTax not picking up basis from amended return with updated Form 8606

Anonymous — Mon, 15 Mar 2021 18:31:37 GMT

When preparing 2020 taxes, I realized that Form-8606 from my 2019 return was inaccurate - specifically, I didn't enter my 2019 contribution for the year which I contributed in 2019, but converted to Roth in Jan 2020. To fix this, I amended the 2019 return from within TurboTax to fix Form-8606, and there was no change in total tax due for 2019.

However, when going through the 2020 questionnaire I now entered my (updated) total tax basis from the amended 2019, and TurboTax still says "Include a brief explanation of why your IRA basis changed with your return".

Questions:

(1) Shouldn't this no longer be the case since I have amended the return ? Do I need to explicitly ask TurboTax somehow to review the amended return ?

(2) Do I need to still provide the brief explanation ? I'm concerned that this would be confusing to IRS since I've already amended the 2019 return, and the basis should now match what's entered for the 2020 return

Re: TurboTax not picking up basis from amended return with updated Form 8606

DanaB27 — Mon, 15 Mar 2021 18:52:38 GMT

Since amended the return after you started your 2020 return this update will not get carried over.

Yes, you can still enter a short explanation "Amended 2019 return in 2021 to report the correct basis on Form 8606 of $xxxx while preparing 2020 tax return."

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TurboTax not picking up basis from amended return with updated Form 8606

Re: TurboTax not picking up basis from amended return with updated Form 8606