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Returning Member
posted Apr 3, 2022 4:59:05 PM

Backdoor in March 2021 for 2020&2021 showing excessive contribution in 2021 tax return

Hi,

In 2021 March, I have contributed $6K for 2020 and $6K for 2021 traditional IRA and immediately converted these to Roth IRA. I am filling the 2021 tax year with 1099R for this $12K. However, Turbotax shows excessive contribution of $6K for 2021 so there is 6% fine for that which is $360. How can I differentiate the 2020 and 2021 contribution in turbotax so that whole $12K doesn't come up for 2021? Also, I noticed that 8606 form for 2020 tax return was missing last year in my turbotax return. Should I send that one to IRS also this year? Is this missing 8606 form the reason? If yes, how can I fix the  2020 return and finalize the 2021 return?

 

Thanks

mouz

0 3 365
3 Replies
Level 15
Apr 4, 2022 3:55:22 AM

The contribution for 2020 was reportable on your 2020 tax return, either as deductible on Schedule 1 line 20 or as nondeductible on Form 8606 line 1, not on your 2021 tax return.  If the 2020 contribution was nondeductible, the amount from line 14 of your 2020 Form 8606 carries forward to line 2 of your 2021 Form 8606 to be used in the calculation of the taxable amount of your Roth conversion performed in 2021.

 

If you did not report the 2020 contribution on your 2020 tax return, you need to amend 2020.  If the contribution was nondeductible, that amendment will include Form 8606.  (Sometimes you can get away with filing the missing Form 8606 stand-alone, but that assumes that the correction causes no other changes to your originally filed tax return.)

Returning Member
Apr 4, 2022 12:44:15 PM

Thanks for the reply. I got it. I need to send 8606 for 2020.

 

Since 2020 contribution is non-deductible and there is no tax owned(15c), can I send 8606 for 2020 alone or do I need to send the amended 1040x also with 8608? Based on below thread, 8606 should be enough. Is that right?

https://ttlc.intuit.com/community/retirement/discussion/i-neglected-to-file-my-non-deductible-ira-contributions-on-an-8606-for-many-years-is-there-anything/00/66653

 

Also, I did this for me and my wife. Even if we filed the return as married jointly, based on my search we need to send separately for me and my wife. Correct?

 

Thanks

mouz

Level 15
Apr 4, 2022 3:09:54 PM

There will be a 2020 Form 8606 for each of you, but you can send them together, particularly if you include Form 1040-X.  (In my original reply I addressed the question about Form 1040-X.)