I took $5,000 in RMDs in 2020 and then decided to put back $2,000 into the same IRA account. The Form 1099 shows the gross amount (the $5,000) taken out; not the net amount of $3,000. When I import the Form 1099 it shows the full $5,000 as taxable. I spoke with the back office of Merrill Lynch and they said this is the way they have to report it. Does anyone know how to record the rollback (the $2,000) in Turbo Tax so that Turbo Tax will then reduce the taxable amount?
Your repayment is considered as a rollover to the same account and is not taxable.
This is how you would enter your form 1099-R and the repayment in TurboTax:
After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount you repaid and it would be excluded from taxation.
Your repayment is considered as a rollover to the same account and is not taxable.
This is how you would enter your form 1099-R and the repayment in TurboTax:
After entering your form 1099-R, click Continue until you reach the screen Tell us if you moved the money through a rollover or conversion. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount you repaid and it would be excluded from taxation.