Ughhh... mistakes with 1099-R, 8606, and who knows what else from my 2014 return

[jeromedawg]

Hi all,

Upon reviewing my 2014 entries in light of figuring cost-basis and stuff between 2014 and now, I noticed and it seems I didn't report my wife's IRA recharacterization (roth to trad) in 2014. On line 15a of the 1040 I only see an amount that accounts for my own IRA recharacterization (also roth to trad). I'm assuming line 15a should contain the *cumulative* total between any and all IRAs we have? Furthermore, there's an incorrect amount for the cost basis entered for the 8606 form which I think I filled out only for myself. Based on all this, should I just go ahead and fill out an amended 1040x entering in the correct total for line 15a as well as two 8606 forms: one for the amount I filled out incorrectly, and that accounts for my wife's IRA that was recharacterized?

Now that I'm scrutinizing stuff, I'm finding all these things coming up where I'm seriously questioning my ability to properly file taxes :( To that point, I filed something incorrectly for 2013 and received a letter that I owed (it wasn't a whole lot but it didn't help with my confidence in all this).

[MustacheAndaHalf]

Layperson's view:

A larger mistake would be including the Roth conversion, but leaving out the re-characterization.  You don't want to pay tax on the conversion when you undid the conversion that same year.  Did you list the conversion, and pay taxes on that (see 15b on the 1040)?
(Probably worth amending if that's the case)

If you canceled a conversion by re-characterizing, I think the main tax implication is the gains that happened while it was a Roth account (if any).  If you undid the conversion before it grew... nothing really happened.  You can file more correct paperwork, but it's not a panic situation in that case.

[Sibley]

Addressing the mistakes in general:

1. Have you self-educated about taxes? Or are you just guessing on stuff?
2. Are you preparing by hand on paper? Or using software of some sort to assist?
3. Are you ok with certain areas, but messing up on others? Maybe when you do more complicated things in the year you need some help with that area.

It may help when you're doing taxes to have 2 piles. Pile one - forms that haven't been used yet. Pile two - forms that have been entered. You know you're not done if there's stuff still in pile 1.

Also, when you prepare taxes, always review the completed forms before you file. Like, put them down for a week and come back with fresh eyes. And compare to prior year, then use some common sense. If you have a bank account and you're getting dividends, then make sure they're accounted for in the return.