So…apparently I was supposed to file a form 8606 for both years I’ve done a backdoor Roth IRA. Oops. (Help! )
I found an article that says I can just send in the form by itself without ammending my prior year taxes, but I don’t see that clearly spelled out in the IRS instructions. Has anyone done this? Do I need to file the prior 8606 before I complete this year’s taxes? If I call the IRS help line will they be able to work through this with me?
Here’s the article I read and the IRS guidelines:
Some extra background
This is our third year doing a backdoor Roth
- Two years ago (2016 taxes) we used H&R Block software and it missed this form
- Last year (2017 taxes) we used a tax service and I specifically asked if there was anything extra we needed for the backdoor Roth since it was the first year with a distribution shown, but they said no (and I shouldn’t have believed them since the whole thing was terrible and we found a lot of mistakes during the process…but live and learn)
- This year (2018 taxes) I’m much more on top of tax law since I certified to volunteer through VITA. I decided to use TurboTax for my own taxes since they should be relatively simple. My estimated refund was smaller than I expected and when I looked into the forms, it’s because I don’t have any established basis in my traditional IRA. It’s very clear to me that TurboTax is calculating everything correctly and the mistake is mine. I actually have a basis of $5500 but I can’t prove that since I didn’t file 8606 last year or the year before.