topic Can an IRA Information Worksheet be adjusted for a basis error that occurred in a prior tax year? in Retirement tax questions

Can an IRA Information Worksheet be adjusted for a basis error that occurred in a prior tax year?

wwilhelm — Sat, 11 Apr 2020 01:34:54 GMT

Re: Can an IRA Information Worksheet be adjusted for a basis error that occurred in a prior tax y...

KarenM90 — Sat, 11 Apr 2020 02:13:08 GMT

It depends.

If the prior error effected the current or previous year taxable income calculation for distributions, then you should amend your return to make the correction.

If the prior year error did not effect the taxable income, you can make the correction under Deductions & Credits.

Choose Traditional & Roth IRA Contributions.

Follow the On Screen prompts until you reach the one that says; Let's Find Your IRA Basis. See Screen Shot below. You can add the correct total basis as of 12/31/2018 on this screen.

Re: Can an IRA Information Worksheet be adjusted for a basis error that occurred in a prior tax y...

fanfare — Sat, 11 Apr 2020 11:14:13 GMT

If you do that, you are hoping the IRS won't make an issue of it.

Personally, I don't think they will.