Issue with 2020 Tax Return – Incorrect Form 8606 & Impact on Later Years

The 2020 tax filing and IRA contribution deadline was extended to May 17, 2021 due to the COVID pandemic. Your 2020 contribution was not late.

This press release from Treasury documents the extension.

March 17, 2021

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

The IRS will be providing formal guidance in the coming days.

Additional details on the taxpayer relief announced today are available on IRS.gov.

IRS Notice 2021-21 confirms that the extension applies to IRA contributions as well.

The postponement of the due date for filing these Federal income tax returns to May 17, 2021, also automatically postpones to the same date the time for Affected Taxpayers to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs), Archer Medical Savings Accounts (Archer MSAs), and Coverdell education savings accounts (Coverdell ESAs).

Regarding the amount discrepancy, a comment below from @littleadv suggests that no action is needed.