Amend 2021 Tax Return to correct Rollover vs. Roth Conversion

[jbkeels]

My Financial Advisor noticed that I accidently checked a box when disclosing a transfer we made to move money from a Traditional to Roth IRA.  On my taxes I accidently checked it as "Rollover" when I submitted but it needs to be a conversion.  Can this be fixed with a simple amendment or is it more in depth since it changes the amount of money that should be taken out?

[fanfare]

did you specify a tax-free rollover?

Did you have basis in your Trad IRA.?

In any case, if dollar amounts are changing, and you amend, that will take care of it.

@jbkeels 

It is not too simple if you had basis because you must track the basis correctly.

[jbkeels]

It was on section 4a IRA Distributions, taxable amount (4b - $0) - and marked as Rollover

[Opus 17]

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@jbkeels wrote:

It was on section 4a IRA Distributions, taxable amount (4b - $0) - and marked as Rollover

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You need to file an amended return.

https://turbotax.intuit.com/tax-tips/amend-return/how-to-file-an-amended-return-with-the-irs/L6kO691...

You need the 2021 software, and a copy of your original 2021 tax data file.  Here are some instructions.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-change-correct-return-a...

You will owe income tax on the converted amount.  You will also owe interest and possibly a late payment penalty, since the tax was due 13 months ago.  Turbotax may offer or recommend to calculate a penalty and include it with your payment.  I would decline if possible, and wait to see if the IRS sends you a bill for penalties and interest.  At that point, you can request a waiver of the penalty for cause, or if this is the first time you owed a penalty.  The interest can't be waived, but if the IRS reduces the penalty, the interest will be recalculated. 

[fanfare]

If you enter the proper code (Box 7) from your 1099-R, your tax return will probably right itself.

Do this after you start AMEND.

print a copy of your original return for your records before you start AMEND.

@jbkeels 

[Opus 17]

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@fanfare wrote:

If you enter the proper code (Box 7) from your 1099-R, your tax return will probably right itself.

Do this after you start AMEND.

print a copy of your original return for your records before you start AMEND.

@jbkeels 

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I don't think it's a code issue.  The 1099-R from the source IRA won't know if the taxpayer performed a non-taxable rollover, a taxable conversion, or a taxable withdrawal.  It appears here that the taxpayer originally indicated a non-taxable rollover instead of a taxable conversion.