Just another wrinkle and this stuff is driving me crazy as an older and long term Turbo Tax user.
So I took one RMD in 2020 before Gov. announcement of not necessary and with Fed taxes withheld as usual.
Then from another INSTITUTION took another "rmd"($20K) but did the rollover back to same account within a few weeks but they kept the Fed Taxes, which they insisted to forward to Uncle Sam.
Unfortunately both report funds taken and taxes paid on 1099 R with distribution code 7. INSTITUTION says not their problem ROLLOVER form sent to IRS in May will absolve me of probs ???? But their 1099 R shows it as taxable !!! And shows the $5K of Fed taxes taken by them. Distribution code 7
So I enter all my 2020 tax stuff now in April and I'm using TurboTax forms a lot as an experienced user of Turbo.
The only way I see to address this predicament of reporting phantom income is to use TurboTax form 1099R distribution code 8 and mark 1099 R as corrected (by me) gross bucks say $20,000.00 but zero net and I enter taxes paid of $5k. Not really sure what distribution code 8 means but it seems to work.
I then entered a text worksheet for 1040 4b saying that there was a rollover to named INSTITUTION account and explaining what I did. But the word ROLLOVER doesn't appear on my 1040 and it would be a partial rollover only. My RMD total net bucks reflects just the one real one taken early on and not the phantom money the INSTITUTION's 1099r would suggest.
My gross income totals and taxes seem correct.
The real question is, is there a way to do this correctly via forms....1099-r etc ???? The INSTITUTION is steadfast on not issuing another 1099r.
Do you think my way is acceptable to IRS. I am going somewhat from memory since I do my work on another computer so feel free to corroborate detail.
And is there way for me to type in a Partial Rollover text on TurboText 1040 ? Thought we once did it.
Please respond soon so that I can sleep better.
thanks, Mike
