You should enter your Form 1099-R as it is shown. The codes in Box 7 are important as they tell what kind of distribution was made.
After you enter your 1099-R into TurboTax, you'll be asked some questions about the distribution.
One of these questions will be What did you do with the money? You'll check the box saying you returned it to the same account).
Then you'll be asked how much of it you put back, and you'll say all of it.
However, if you received an RMD, that is generally taxable (a return of basis or qualified distribution from a ROTH IRA, would be tax free).
Those two answers will result in the loan distribution not being taxed.
Here's where to enter your 1099-R in TurboTax:
- Open or continue your return.
- In the Federal section, select Wages & Income.
- Scroll to locate Retirement Plans and Social Security.
- Select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
You can also find the 1099-R section using Search. Open your return, enter 1099-r in the search bar, and select the Jump to 1099-r link.
The total amount of your RMD is taxed as ordinary income at your personal federal income tax rate. State taxes may also apply.
Click here for information on entering a Form 1099-R into TurboTax.
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