I recently realized that I forgot to add 2023 non deductible IRA contributions to my tax return. When I got my 1099-R for 2024, it is showing 13.5K in distributions (backdoor roth) and of course on this years return I included the 7K as non deducitble IRA contributions due to income levels. My 1040 is showing taxable amount of $6,500 because of the non deductible contributions being left off of last years tax return and the basis is not matching up. I have already filed an amended return for 2023. Do I need to file an extension and wait for 2023 amended return to update and be included on current year return. I am not trying to pay an additional 24% in taxes on that $6,500 in the current year that is money that has already been taxed.
Use the steps in the following TurboTax article under If your conversion contains contributions made in 2024 for 2023 to update your basis in the Traditional IRA and move forward.
If you amended your return simply to record the non-deductible contribution and the amended return included Form 8606, then you should be good. Otherwise, follow the instructions in the article to also file Form 8606 on its own to record the prior basis.
Make the basis correction in your 2024 return and go ahead and file it. There is no need to wait for the 2023 amended return to process.