@teaparty666 wrote:
Hi,
I thought your posting was going to solve my 2020 RMD from an Inherited IRA - it was looking good, got the "Rollover" and $0 after the $ amount taken out as the distribution (and returned to the Inherited IRA) and I clicked NO for it being a RMD Distribution, NO to Inherited IRA and NO to it being related to COVID-19.
However, after completing the income sections, the resulting Picture of my 2020 Income shows the distribution amount as "IRA Distributions - non-taxable" so it shouldn't count as income BUT when I add up the all the income items including the RMD amount, the Total Income shows that it included the RMD amount. So now I'll be reporting a higher income and be taxed. I had deleted the 1099-R and re-entered but it still doesn't exclude the RMD amount from the Total Income Summary...
How can I get Turbo Tax to fix this.
What makes you think that an RMD is not a taxable distribution just like any other Traditional IRA distributions? Of course it is taxable as ordinary income.
But for 2020 there were no RMD's at all,so you did not need to take it, but if you did then it is taxable.
If you rolled it back then:
Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.
If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.
Then you will get the screen to say it was "moved" and all rolled over.
Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.
That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to 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.**
