Can't find a way to correct IRA basis and FMV after entering 1099-R

JimG
JimG Member Posts: 3 Newcomer
in Retirement Income

I have basis in my IRA from contributions made many years ago. When entering 1099-R for IRA distribution this year, I erred entering the basis amount and FMV data. The Form 8606 was automatically calculated with this misinformation.

I cannot find a way to go back to correct the basis and FMV values.

I have deleted the 1099-R and re-entered it but the questions for basis and FMV are not asked again. The Form 8606 re-generates with the old basis and FMV data.

I need a way for the old data to be removed or corrected.

Any suggestions other than creating a new account would be appreciated.

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  • JimG
    JimG Member Posts: 3 Newcomer
    Answer ✓

    User error again. Deleting 1099-R and logging out before re-entering the 1099-R the non-deductible dialogue appears again. Sorry for the bother.

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  • kiarab
    kiarab FreeTaxUSA Agent Posts: 99
    Answer ✓

    Hello,

    I’m glad you were able to figure it out. If a page you previously saw isn’t appearing, deleting the form and then re-entering it can trigger the screen again.

    In this case, the IRA basis questions (if they apply) will appear again after you enter your 1099-Rs by going to Income -> Retirement Income. Do not click Edit next to the 1099-Rs you have already entered.

    Click Save and Continue. It should ask you (You might need to click on Save and Continue a couple of times) about Prior Year IRA contributions and if you ever had any non-deductible IRA contributions. If you say Yes to that question, the next page should ask you about your Traditional IRA Basis and Value. 

    If you do not see it, you may want to check to see if the IRA box is checked in our software.

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  • JimG
    JimG Member Posts: 3 Newcomer

    Thank you for your response. Upon reflection I believe my issue was entirely a user error. I believe I was expecting all questions regarding the 1099-R distribution would be asked in sequence. There are three of them that are (is this an inherited IRA, any rollover, etc.) However, I now realize the prior basis and FMV questions are not accessed until the user scrolls to the bottom and hits "continue", rather than simply being asked in order.

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  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 409
    https://community.freetaxusa.com/discussion/comment/4004#Comment_4004

    Hi JimG,

    So glad to hear you were able to resolve the issue and move forward on your tax return.

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