Deductions & credits
@bumbacat wrote:
TT IS NOT ALLOWING A CREDIT FOR AMOUNTS RETURNED TO THE IRA WITHIN 60 DAYS OF WITHDRAWAL. TT SAYS OUR LEVEL OF "EARNINGS" MAKE ANY IRA CONTRIBUTIONS NOT DEDUCTIBLE FOR TAX PURPOSES. THE 1099R SHOWS GROSS WITHDRAWALS, NOT TAKING INTO ACCOUNT THE PUT BACKS. HOW DO WE RECEIVE CREDIT IN 2021 FOR AMOUNTS RETURNED BEFORE THE 60 DAYS EXPIRED? EVEN IF WE RECEIVED A 5498, WE WANT TO DEDUCT AMOUNTS RETURNED TO REDUCE TAX LIABILITY. PLEASE HELP. NETTING THE ACTUAL 1009R AMOUNT WITH WHAT WE PUT BACK WOULD WORK, BUT WOULDN'T THAT RAISE FLAGS WITH THE IRS (IE AMOUNT REPORTED DOESN'T MATCH 1099R AS REPORTED BY BANK)?
A 60 day rollover is NOT a contribution. There is nothing to deduct - it is just putting the money back and is not taxable.
Enter a 1099-R here:
Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
It will show as income on the summary screen which shows gross income, not taxable income.
The income will be reported on line 4a on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.
The taxable amount will go on line 4b. In the case of a rollover, that amount will be zero.
