@mec0510 wrote:
I had a RMD for which I received a 1099-R. Upon entering the 1099-R information, the system allowed me to enter the amount repaid to my IRA. The system then presented me with a screen that said the 1099-R distribution would not be included in my taxable income (which I expected). However, the tax I own is significantly overstated. When looking at the detail "Here's a Picture of Your 2020 Income", the IRA RMD and the Pension RMD shows as taxable. The totals of these amounts equal the amount that my income is overstated thus causing the overstated tax owed.
It will show as income on the summary screen which shows gross income, not taxable income.
The IRS requires reporting all income on a *income* tax return - taxable and not-taxable.
The income will be reported on line 4a (or 4c) and 4b (or 4d) on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.
The taxable amount will go on the 1040 line 4b (or 4d). In the case of a rollover, nothing goes on 4b (or 4d).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
