Incorrect total basis on form 8606 for a prior year
I contributed the maximum amounts to a traditional IRA for 2010, 2011, and 2012.
When filing my 2010 taxes, I correctly put the total basis on form 8606 as $0.
When filing my 2011 taxes, I mistakenly put the total basis on form 8606 as $0.
I have two questions:
1. What should I put as my total basis on form 8606 when filing my 2012 taxes? Turbotax automatically put the basis in as $5,000 (calculated from my 2011 taxes), and when I tried to change it to $10,000, it said I should add an exaplanatory note. Is this the correct way to proceed? Or should I keep the total basis as $5,000?
2. Do I need to amend my 2011 taxes to correct the cost basis? If so, what exactly needs to be done? Do I just send the IRS an 8606 form with the change, or do I need to send them my entire taxes for 2011 with the change?
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