I withdrew 30000 from my 401k as a covid withdrawal in 2020. Paid tax on $10,000 last year. In 2021 I paid back $10,000 to my IRA Rollover account as I no longer work for the company with the original 401k. When I enter that into the box that says how much did you pay back to your IRA, the program calculates that I still have to pay tax on that $10,000. If I place that same $10,000 into the box that says how much did you pay back into any other type of plan, the program calculates that I do not owe any tax on that $10,000 Any Thoughts?
You'll need to sign in or create an account to connect with an expert.
To test out the program, I entered the same scenario you described. Under both instances, you should not have been taxed on the amount since you paid it back to some type of a retirement account. It may have been the manner in which it was reported.
If possible, can you send us a diagnostic so we can see how this is treated in your return? The diagnostic will send us a sanitized version of your return, which removes all personal identifying information and all we see are numbers in the forms in your return.
To send if you are using Turbo Tax online, go to tax tools>tools>send tax file to agent. When you select that, it will give you a token number to give to us. Tell us what that token number is.
If you are using Windows Desktop, select the online button at the top>send tax file to agent. This will also bring up a token number.
If you paid back a 401k distribution, you must enter that in the 401k section.
As you said, it doesn't matter what account into which you put back the money.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Michael.stone
New Member
JRretires
Level 3
ArchesNationalPark
Level 3
ArchesNationalPark
Level 3
famus2
Returning Member