Forgot to file 1099-r for mega backdoor 401k

[taxesohbother]

Hi everyone! I forgot to file my 1099-R for my after-tax 401k -> Roth 401k conversion (mega backdoor) for my previous year's tax return. Can anyone help me figure out which forms I need to file/steps I need to take? Luckily, I used TurboTax so hopefully, it'll be easy.

Thank you so much in advance! 

[taxesohbother]

Whoops, OP here. Forgot to add that the taxable amt in box 2a was $0.01 and box 7 code is G. I'm just concerned that in my previous 1040, line 5a Pensions and Annuities and 5b are blank.

[MaryK4]

You will need to file a Form 8606 to show the nondeductible contributions.  You can file it for a prior year without amending your tax return, but it is best to enter in TurboTax so that it is pulled forward each year.  See How to File an Amended Tax Return with the IRS - TurboTax.  

[taxesohbother]

Hi Maryk4, thanks for the response—but isn't Form 8606 only for the backdoor (traditional IRA -> Roth IRA conversion) and not the mega backdoor (after tax 401k -> Roth 401k conversion)?

[DanaB27]

Yes, Form 8606 is only used for IRAs and not for the mega backdoor.

You should have the distribution amount in 5a and $0 in 5b (rounded down) on Form 1040.

If you amend your return you will follow these steps:

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start/Edit" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Enter the Form 1099-R (if not already entered)
5. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "Yes"
6. On the "Did you make after-tax contributions to a 401(k), 403(b), or 457(b) plan?" answer "Yes" and the amount from box 5 should be listed in the field.

Please see How do I amend my federal tax return for a prior year? information.

[taxesohbother]

Thanks for your response! I followed your steps to add the 1099-R, but what's strange is that the resulting 1040-X now shows a different standard deduction amount (an increase). Interesting, this doesn't result in any change in tax owed or refunded ($0). Is that right?

[MinhT1]

Please check.

You may have amended your 2022 tax return. The standard deduction is higher for tax year 2022 than 2021.

You must amend your 2021 tax return.

Please read this TurboTax Help article on amending a prior year tax return.

[taxesohbother]

Yup, this is for 2021—all other numbers in the 1040-X and 1040 match my 2021 return. Could this be a bug in TurboTax?

[taxesohbother]

And just double checked that the amt ($299) is different than the 2021 to 2022 increase in the standard deduction ($400) @MinhT1 

[AnnetteB6]

The 2021 tax return allowed an additional amount to be included with the standard deduction if you made certain cash charitable contributions and did not claim itemized deductions.  

If you made a $299 charitable contribution for 2021 it may explain the difference you are seeing.

@taxesohbother 

[taxesohbother]

Ahhh, thanks @AnnetteB6 ! Though it looks like TurboTax does may have two bugs in the 1040-X?

I double checked that the charitable contribution was reported in my previous 2021 return, but the new 1040-X that was generated shows:

(1) The contribution as an adjustment in "Column B: net change" of the 1040-X, not "Column A: Original amount reported or as previously adjusted." 

(2) And on "line 5 Taxable income," even though it says that if the result is zero or less from subtracting line 4b from line 3, enter "0", it lists "-299" and not "0."

Do you know if this is incorrect and how to go about correcting it?

[RobertB4444]

We'd like to take a deeper look at your return and see what's going on here.  We'd like you to create a 'sanitized' version of your return for us to look at (one that removes all of your personal information but keeps the numbers so we can look at the math).  Here's how you do that-

TurboTax Online
1. Sign into your online account.
2. Locate the Tax Tools on the left hand side of the screen.
3. A Drop down will appear. Click on Share my file with agent.
5. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated onto a response.


TurboTax Desktop
1. Click into your return.
2. Click Online and select "Send Tax File to Agent".
3. This will generate a message that a diagnostic copy will be created. Click on OK, the tax file gets sanitized and transmitted to us.
4. Please provide the Token Number that was generated onto a response. 

Thank you!

@taxesohbother 

[RobertB4444]

The sanitized version of your tax return shows no changes from the original return except the non taxable rollover of the Roth conversion.  I am not seeing the $299 change that you mentioned.  I walked through all of your entries and everything seems as you described that it should be.

I'm going to recommend that you first make sure that your program has been updated and then clear your cache and cookies and take a look at it again.  It certainly looks to me as though you have done everything exactly correctly on this amended return.  Please use the steps below and then take another look at the forms t the end and see if they look right now.

How to clear your cache and cookies.

@taxesohbother 

[taxesohbother]

HI @RobertB4444 is there a way to chat with a support person 1:1 so we can troubleshoot privately?