@vicalitb wrote:
I have deleted all the 1099-Rs. Line 4a and 4b of 1949 are blank. Then I re-entered one 1099-R. The Gross distribution is say $1,000. I had it all donated to a charity. The IRA/SEP/SIMPLE box is checked. The software acknowledges that the $1,000 is designated as non-taxable. After selecting two options in the "About this Retirement Account" page, line 4a - IRA Distributions of Form 1040 shows 1,000 and line 4b-Taxable amount shows 1,000 (which I expect to be blank)! This does not make sense.
The two questions in the "About this Retirement Account" page are:
1. Was this withdrawal an RMD in 2020? yes/no
I selected yes. Actually RMD in 2020 was suspended. Would it be better I select no?
2. How much of the $1,000 I received applies to the RMD that need to be taken out? all / part
I selected all
Does my choice of options cause the error?
Yes, NONE of the distribution was a RMD and RMD NOT required. The CARES act waived the 2020 RMD so it did not exist.
**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.**
