Amending tax return for 2021, 2022 to fix form 8606 mistake

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Topic Author
Fundmenow
Posts: 27
Joined: Tue Feb 07, 2023 5:07 pm

Amending tax return for 2021, 2022 to fix form 8606 mistake

Post by Fundmenow »

Hello,
While working on my 2023 taxes, I realized I have been entering my backdoor roth ira incorrectly in turbotax, resulting in incorrect form 8606.
Please note, both ( wife & I ) have employer 401k, and income is above ira threshold. So we don't get any deductions for ira contributions.
I started backdoor roth from Tax year 2021, so I have 2021 & 2022 form 8606 incorrect.
For both years, form 1040 line 4a amount is 12000 ( 6000 per person), line 4b is 0. BUT It also says Rollover. That's where I messed up. When I entered 1099R forms, I made mistake of saying selecting Rollover instead of conversion.
Because of this, my basis for IRA in form 8606, line 14 was non zero. Part II of form 8606 was blank.

When I use turbotax to amend my 2021 and 2022 returns, my tax liability stays same. Only change I see is form 8606 gets populated correctly. Part I, and Part II both showing correct numbers.

Reading different threads on this topic, I understand I should amend both 2021 and 2022 returns. I should file 1040x and include form 8606s. Wife & I, should not sign second page of 8606.
For 2022, I have efiled amended return , so I cannot efile again. Amended return was accepted. I have to do paper file the amended return.

Those who amended their returns due to form 8606, can you confirm documents needed for paper filing 1040X.

Edit - grammar
Last edited by Fundmenow on Tue Apr 02, 2024 5:12 am, edited 1 time in total.
nalor511
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Joined: Mon Jul 27, 2015 1:00 am

Re: Amending tax return for 2021, 2022 to fix form 8606 mistake

Post by nalor511 »

Fundmenow wrote: Mon Apr 01, 2024 10:54 pm
For 2022, I already once amended return , so I cannot file again. Amended return was accepted.
You can amend more than once
Topic Author
Fundmenow
Posts: 27
Joined: Tue Feb 07, 2023 5:07 pm

Re: Amending tax return for 2021, 2022 to fix form 8606 mistake

Post by Fundmenow »

nalor511 wrote: Tue Apr 02, 2024 1:52 am
Fundmenow wrote: Mon Apr 01, 2024 10:54 pm
For 2022, I already once amended return , so I cannot file again. Amended return was accepted.
You can amend more than once
Ohh.. damn autocorrect. I meant to say I cannot efile as I have already efiled amended return once.
bberris
Posts: 2449
Joined: Sun Feb 20, 2011 8:44 am

Re: Amending tax return for 2021, 2022 to fix form 8606 mistake

Post by bberris »

Fundmenow wrote: Tue Apr 02, 2024 5:10 am
nalor511 wrote: Tue Apr 02, 2024 1:52 am
Fundmenow wrote: Mon Apr 01, 2024 10:54 pm
For 2022, I already once amended return , so I cannot file again. Amended return was accepted.
You can amend more than once
Ohh.. damn autocorrect. I meant to say I cannot efile as I have already efiled amended return once.
You can do 3 amended efiles. On OLT they are free.
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retiredjg
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Re: Amending tax return for 2021, 2022 to fix form 8606 mistake

Post by retiredjg »

Now that you have done it "correctly", does that eliminate the word "rollover" near box 4b? Just curious.

I don't know if anyone knows for sure the right way to handle this. What you are considering is one of the ways and almost certainly not wrong.

Since there is no change in the amount of tax due, I would just leave it alone myself. The IRS is not interested in Form 8606. They are interested in lines 4a and 4b...which you said are correct.

It is easy to correct the basis on line 14 going forward. If you feel like your basis is $0, just don't put anything on line 2 for this year.
Topic Author
Fundmenow
Posts: 27
Joined: Tue Feb 07, 2023 5:07 pm

Re: Amending tax return for 2021, 2022 to fix form 8606 mistake

Post by Fundmenow »

retiredjg wrote: Tue Apr 02, 2024 7:46 am Now that you have done it "correctly", does that eliminate the word "rollover" near box 4b? Just curious.
yes, rollover goes away.
Since there is no change in the amount of tax due, I would just leave it alone myself. The IRS is not interested in Form 8606. They are interested in lines 4a and 4b...which you said are correct.

It is easy to correct the basis on line 14 going forward. If you feel like your basis is $0, just don't put anything on line 2 for this year.
Yes, for year 2023, I am fixing it. form 8606 looks good.

I read in turbotax community forums, many people made same mistake. Most were advised to amend the return and send correct 8606.
But among those, people have made more serious mistakes like over contributing etc.
I am confused , if I should file the amendment or do nothing.
Topic Author
Fundmenow
Posts: 27
Joined: Tue Feb 07, 2023 5:07 pm

Re: Amending tax return for 2021, 2022 to fix form 8606 mistake

Post by Fundmenow »

You can do 3 amended efiles. On OLT they are free.
What is OLT -- www olt dot com -- Found a site using google. Never heard of it though.
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