Forgot to claim IRA deduction in 2006

[pshimkas]

I know what my options are - file an ammended 1040X for 2006 or file an 8606. Sounds easy right? When you get down to actually doing it I don't understand the instructions on the form 8606. It sounds like alot of blah blah blah. Can I use the 8606 dtd 2008 without attaching to my 1040? Or am I suppose to use form 8606 from 2006? What if I filed a 1040EZ in 2006? Can I still claim the deduction? If I fill out the 8606 does the IRS notify me of my basis so I can convert the non deductible part into a Roth account? (Maybe I'm just burned out from tax season). Did anyone participate in any Tea Parties? I would have gone but I was too busy finishing my taxes. Any help is appreciated.

 

[kaneohe]

I'm guessing a bit since your post wasn't crystal clear (at least to me). You filed 1040EZ in 2006 when you had an TIRA that was partially deductible (due to income limitations?).
1040EZ has no line for an IRA deduction so for that, and perhaps other reasons, you did not take a deduction then.

If that is your situation , I would think you would file a 1040X for that year to get the deduction part and also an 8606 to claim the non-deductible part (basis). I would use the 2006 year 8606 w/ perhaps an explanatory note. Perhaps if you tried the 8606 a few months from now, you'd have more luck........if it's your first one , there are only a few lines to fill out. It's not that bad if you follow the line by line instructions.

FYI, you can't just convert the non-deductible part into a Roth.....at least tax-wise ........since every conversion will consider all your IRAs together and assume that the conversion is composed of a mix of deductible and non-deductible parts and guess what.......you get to use 8606 to determine what that mix is.