This can be overridden in the system:
- Go to Federal > Deductions & Credits > Retirement and Investments > Retirement Savings Contribution Credit and click Start/Revisit.
- The amount your mother contributed through an employer should already be in there. Any additional contributions will have to be entered.
- When you get to Tell us about her distributions from retirement plans, it should have the amount from the 1099-R for your uncle's death distribution in there automatically in 2021. However, you can simply delete it. Per the instructions on the form and TurboTax's "Learn More" section which is only on the TurboTax Desktop for this section, this list of items do not reduce your eligible retirement contributions:
1) Any amounts you "roll over" via a trustee to trustee transfer or a rollover distribution.
2) Distributions that are taxable as a result of an in-plan rollover to your designated Roth account.
3) Any distribution that is a return of a contributions to an IRA made during the year for which you claim the credit if the distribution is made before the due date of your return, you do not take a deduction for the returned contributon, and the distribution includes any income attributable to the contribution.
4) Loans from a qualified employer plan treated as a distribution.
5) Distributions of excess contributions or deferrals.
6) Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k).
7) Distributions from an eligible retirement plan that are converted or rolled over to a Roth IRA.
😎 Distributions from a military retirement plan.
9) Distributions from an inherited IRA by a nonspousal beneficiary.
