@Mike610 wrote:
I input my 1099-R for the RMD including box 4 tax withheld and then chose non-taxable and rolled over in the subsequent questions. This worked, however, in the income summary, the full RMD is counted in total income although shown as non taxable. Question: won't this inflated income be used to determine eligibility for future relief packages such as Congress is working on now? Appears that it would be better to not report the RMD out and back in transactions at all. That would be the same as those who chose to time their RMD until after the CARES Act was passed and thus will have no RMD transactions for 2020 at all.
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.**
