- Step #1 - In my 2021 return, TurboTax did not correctly keep track of my historical “non-deductible” Traditional IRA contributions. As such, Line 2 of Form 8606 showed the wrong historical basis. To keep this example simple, let’s assume Line 2 of Form 8606 in 2021 was supposed to show $6,000, but instead it showed $0. Also, for added context, my 2021 tax return was not impacted (in terms of refund / payment for this error), but it set the wrong precedent basis for my recently filed 2022 tax return.
- Step #2 - In my 2022 return, I did manually correct / calculate for the historical “non-deductible” Traditional IRA contributions in Line 2 of Form 8606 and filed the 2022 return based on the correct basis. The refund / payment on my 2022 return was dependent on Line 2 of Form 8606, so I made sure to use the correct amount in there. TurboTax added a statement at the end of my 2022 return in which I explained that my 2021 return missed $6,000 of Traditional IRA basis. However, I was not able to attach the amended Form 8606 for 2021 given that I e-filed my 2022 return.
- Question #1 – Based on what I described on Steps #1 and #2, do I need to file an amended Form 8606 for year 2021 to show the correct amount in Line 2 (i.e., $6,000 vs. $0)? This would not have any impact on my 2021 Tax Return, but as I mentioned, it set the wrong basis for my recently filed 2022 tax return (for which I manually adjusted for the correct basis + statement attached, as described above).
- Question #2 – In case the answer to Question #1 above is “yes” - I am assuming I would only need to send my amended 2021 Form 8606 alone without a 1040X, correct?
- Question #3 – In case the answer to Question #1 above is “yes” - How do I find the exact IRS address to which I should mail the amendment?
- Question #4 – In case the answer to Question #1 above is “yes” – Do I attach a statement to my amended 2021 Form 8606 explaining why I am mailing it in?
- Question #5 – In case the answer to Question #1 above is “yes” – Is there a deadline by which I should mail-in the amended 2021 Form 8606?