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Forgot Roth Conversion in Tax Return
Old 04-02-2024, 05:13 PM   #1
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Forgot Roth Conversion in Tax Return

I filed my 2023 tax returns (both Federal and State) a few days ago. But today I realized that I forgot to include the amount of Roth conversion in the tax returns, resulting in paying less taxes.

I have never done this before, what should I do to correct the problem? How to amend the filed federal and state tax returns?
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Old 04-02-2024, 05:22 PM   #2
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Did you use tax software to file?
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Old 04-02-2024, 05:28 PM   #3
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If the entire amount of the Roth conversion is taxable income, then you could go ahead and just pay the additional amount due using one of the electronic payment methods at irs.gov. Make sure to select 1040 for 2023 as the form you're paying for. The IRS will figure out what happened when they do document matching and will probably send you a letter saying you owe $0. If you wait until after April 15th to pay, there will be an underpayment penalty. If you choose not to file an amended return, you do still need to file form 8606. That form can be filed alone, without a 1040. See the 8606 instructions for details.

If you don't want to do that, or if some part of your Roth conversion is not taxable, then amend your returns. If you did your returns yourself using software, then that same software should also be able to do an amendment and e-file it (state amendments may have to be filed on paper, it depends on the software and the state). Or you can use paper forms for both Fed and State and mail them in. The Federal amended return is a 1040X and you'll also need a new 1040 with the correct numbers on it. If you send in a paper return, you can still pay electronically, but make sure to select 1040X as the form you're paying for.
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Old 04-02-2024, 05:30 PM   #4
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You should have had a 1099R for the withdrawal from the tIRA
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Old 04-02-2024, 05:36 PM   #5
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Quote:
Originally Posted by SevenUp View Post
Did you use tax software to file?
Yes, I used H&R Block software to file the Federal return.
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Old 04-02-2024, 05:39 PM   #6
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Originally Posted by RE2Boys View Post
You should have had a 1099R for the withdrawal from the tIRA
+1

Perhaps OP thought the 1099R was just an FYI or something..........
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Old 04-02-2024, 05:56 PM   #7
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Link to the IRS on how to file an amended return https://www.irs.gov/filing/file-an-a...s%20on%20them.
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Old 04-02-2024, 06:02 PM   #8
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Originally Posted by flyingaway View Post
Yes, I used H&R Block software to file the Federal return.
Amend Tax Return Online | H&R Block
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Old 04-02-2024, 06:53 PM   #9
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Originally Posted by cathy63 View Post
If the entire amount of the Roth conversion is taxable income, then you could go ahead and just pay the additional amount due using one of the electronic payment methods at irs.gov. Make sure to select 1040 for 2023 as the form you're paying for. The IRS will figure out what happened when they do document matching and will probably send you a letter saying you owe $0. If you wait until after April 15th to pay, there will be an underpayment penalty. If you choose not to file an amended return, you do still need to file form 8606. That form can be filed alone, without a 1040. See the 8606 instructions for details.

If you don't want to do that, or if some part of your Roth conversion is not taxable, then amend your returns. If you did your returns yourself using software, then that same software should also be able to do an amendment and e-file it (state amendments may have to be filed on paper, it depends on the software and the state). Or you can use paper forms for both Fed and State and mail them in. The Federal amended return is a 1040X and you'll also need a new 1040 with the correct numbers on it. If you send in a paper return, you can still pay electronically, but make sure to select 1040X as the form you're paying for.
The IRS has accepted my (original) return, but I have not received the $1,200 refund yet. I just worked out the amended return and the amended refund will be $800. So the software says that I need to pay IRS $400. I use electric payment and they will pay to or withdraw from my checking account. So, should I e-file the amended return now, or should I wait until I receive the $1,200 refund, to avoid confusion? (What if they already figured out the problem, as you mentioned, and only refund me $800?)
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Old 04-02-2024, 06:57 PM   #10
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Originally Posted by RE2Boys View Post
You should have had a 1099R for the withdrawal from the tIRA
Yes, I have 1099R, but I forgot to input the data. The H&R Block software originally said (in February) that they have some updates to be available in March. Then I went on a travel to Asia for a month and forgot that I did not finish inputting data. My mistake.
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Old 04-02-2024, 07:13 PM   #11
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You should file an amended return now. If you wait until you get your refund and past April 15, you will get hit with late penalty. How do I know? It happened to me.
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Old 04-03-2024, 08:07 AM   #12
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Quote:
Originally Posted by flyingaway View Post
The IRS has accepted my (original) return, but I have not received the $1,200 refund yet. I just worked out the amended return and the amended refund will be $800. So the software says that I need to pay IRS $400. I use electric payment and they will pay to or withdraw from my checking account. So, should I e-file the amended return now, or should I wait until I receive the $1,200 refund, to avoid confusion? (What if they already figured out the problem, as you mentioned, and only refund me $800?)
Ah, I see. You are getting a refund now and after the amendment would get a smaller refund.

If you want to, you can still wait and let them figure it out, but you should pay the additional $400 before April 15 even though they may just have to turn around and send it back to you. Otherwise, depending on the timing they may send you the full $1200 you originally claimed and then you'll get hit with a penalty and interest for the $400 they want back from you. If they do figure out the error and only send you $800, they'll eventually send the extra $400 back too.

Since you've already got the amended return ready though, it's probably easier to just go ahead and file it and send in the $400 that way. If you e-file the amended return, H&R Block should be able to set up the payment electronically.
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Forgot Roth conversion in tax return
Old 04-03-2024, 02:33 PM   #13
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Forgot Roth conversion in tax return

You indicate you used HR Block software. Go back to that software and do nothing to your return yet.then look for the MISC heading under federal and that should take you to the amended return area. The software has you print out the form and then mark it as original. You can google online also for step by step actions. I just had to do an amended return because of an estate K1 delivered recently. There are several steps spread before you proceed.
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