BarnabyJonesNap

BarnabyJonesNap OP t1_iyezl0q wrote

Reply to comment by rnelsonee in Need to correct form 8606? by BarnabyJonesNap

I’ve never done an amendment before. Bummed that free fillable forms is gone. What’s the best way to dk that?

Or assuming I don’t file any amendments and sort of just fix it going forward, how would I do that, say with FreeTaxUSA or similar?

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BarnabyJonesNap OP t1_iyev1yz wrote

Reply to comment by nolesrule in Need to correct form 8606? by BarnabyJonesNap

What was pointed out tk me that I think is correct is the fact that I did 2 contributions and 2 conversions in calendar year 2020, one contribution for year 2019 and one for 2020, and the conversions both show in 2020 8606. So maybe line 8 on the 2020 8606 should have been 12k instead of 6k to zero that out?

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BarnabyJonesNap OP t1_iyeouu0 wrote

Reply to comment by rnelsonee in Need to correct form 8606? by BarnabyJonesNap

Thanks. Here is what I’ve pieced together looking back at my Vanguard account.

I had opened my first traditional IRA in 2014 and made a contribution. No Form 8606 and no further contributions to any IRA until 2017. 2017 I converted all of my traditional IRA to a Roth IRA. I then made a contribution to my traditional IRA and converted the entire thing to my Roth, leaving $0 in the tIRA. I filed my first ever form 8606 for the tax year 2017, which showed no basis.

2018 I made a contribution directly to my Roth IRA, no tIRA activity (still $0 balance). Form 8606 for tax year shows $5,500 basis. I assume this is the origin of the mistake?

2019 I did some strange things, probably because I confused myself. I believe what I did was attempt to recharacterize the 2018 Roth contribution in March 2019 to a tIRA and then reconvert that back to my Roth IRA. Maybe thinking I was over the income limits to have made the direct Roth IRA conversion. Whatever the reason, that again left $0 in my tIRA and everything in the Roth IRA. I later made a contribution to my tIRA in January 2020 for the tax year 2019, and then converted that to my Roth also in January 2020 (I understand the contribution would show on my 2019 taxes but the conversion on the 2020). My Form 8606 for the tax year 2019 has $6,000 basis. No tIRA balance at end of year 2019.

2020, I made another contribution for the tax year 2020 to my tIRA and converted that to my Roth IRA. My Form 8606 for the tax year 2020 has $5,999 basis. $0 in tIRA end of year.

2021, I made a tIRA contribution, then converted the entire amount to my Roth IRA. Form 8606 again shows basis of $5,999. $0 in tIRA at end of year.

How would I fix this?

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