@RChisholm wrote:
I know there was no RMD for 2020, but there WAS real federal tax withheld and sent to the IRS despite NO RMD for 2020. I returned the entire RMD distribution back to my account promptly after the CARES Act., the gross amount returned included the tax amount withheld. So what happens to that tax withheld, essentially twice paid?
When you entered the 1099-R and said that is was NOT an RMD and you rolled it back then any tax withheld in box 4 would go on the 1040 tax return line 25b and be applied to offset your tax liability or add to your refund. You do not loose it.
**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.**
