Retirement tax questions

After reviewing comments from @macuser_22, I have revised my response.

Yes, under COVID rules, you were not required to take an RMD in 2020. Here is the correct way to report so that everything is reported correctly. 

1.  First of all you will need to split the 1099-R into two entries in your return. For sake of illustration, I am going create an example where $30,000 was the gross distribution. Now I want you to change the original 1099-R to a $20,000 distribution and all other information on the form is the same, including taxes that were withheld. We will create another 1099-R for the remaining $10,000 later.
2. In this 1099-R we will assume that you took $10,000 cash and rolled $10,000 into a traditional IRA.  
3. After you change the amount in the original 1099-R, scroll through the screen until it asks How much of the $20,000.00 was a RMD? in this instance, indicate that none was an RMD or else the entire amount will be taxable. Since an RMD, was not required because of COVID, the IRS needs not know the original intent of the distribution.
4. Next it asks, Tell us if you moved the money through a rollover or conversion. Here will will indicate you
   rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)
5. The next screen asks how much was rolled over. Here we will say $10,000.
6. Now you will navigate through the screens until you reach a screen that says Tell Us More About This Retirement Plan Distribution. Here you will say, you were not required to take a required minimum distribution.
7. Now i check my 1040 preview and the amount was correctly allocated between the distribution that was taken and the rollover. now my taxable income is $10,000 for the money I kept. Now let's address the remaining $10,000 in the second 1099-R.
8. Now you will want to add a second 1099R for the remaining $10,000. Again, you will record the same information from your original except for the distribution amount and taxes that may have been withheld because all taxes were reported in the first 1099R per my instructions.
9. After entering the information on the form, scroll through the program until it asks How much of the $10,000.00 was a RMD? in this instance, indicate that none was an RMD for the same reasons I outlined above.
10. When you reached a screen that asked Tell us if you moved the money through a rollover or conversion Here you will indicate you converted this $10,000 to a Roth IRA.
11. Then it will ask, Did you convert all of this $10,000.00 (Box 1) to a Roth IRA? You will say yes.
12. Next will be a summary screen for your 1099-R's. You will see the 1099-R split into two events. 
13. Now i check my preview screens and i now show that $20,000 is taxable because of the cash you kept plus the Roth conversion. I also see that the rollover is reported correctly.
14. Also I forget to mention, as you scroll through the screens after entering your traditional IRA rollover, you will reach a screen that says Tell Us the Value of Your Traditional IRA. This is where you make any adjustments to reconcile your 5498. 

[Edited 02-02-2021|02:04PST]