CARES Act IRA Withdrawal and Repayment Showing as Taxable (But 457 and 401k process correctly)

[Brenton_H]

I took a CARES act early withdrawal from a 457 account, an individual 401k, and a traditional IRA. All three have been completely repaid. However, in turbotax it is still showing my traditional IRA distribution as a $24,000 taxable distribution. What am I doing wrong/how can I get it to recognize that this was repaid? In the 1099-R entries section of Personal Income, the system is adamant that I am not claiming it as a covid withdrawal, even though I clearly did in the checkbox area.

It seems that when the "IRA/SEP/SIMPLE" box is checked on the 1099 it is giving me grief, although it seems clear from the COVID CARES act rules that traditional IRAs still qualify for CARES act distributions.

EDIT: I looked at the form 8915E-S that it produced and line 19 says "0" for amount subject to tax, but then when I look at line 4b on my 1040 it still shows the full amount of money withdrawn instead of recognizing that it was repaid.

[SamS1]

You might try changing the order you entered the 1099Rs.  If you entered the IRA 1099R last, try entering it 1st or second the review your 1040.  You would need to delete the 457 or 401K distribution to see if this would work.  I read another poster that was having similar issues and changed the order the 1099Rs were entered and it worked.  Also, clear your browser cache and cookies.  This might also help.   Cookies are small files that temporarily store data on your computer. We use them to personalize your experience so you see information you already entered and not items that are irrelevant or repetitive.  On rare occasions, they may make your browser think you already did something that you still need to do. To fix that, you'll need to delete (clear) the cookies from your browser.  Each browser has a slightly different method for deleting cookies. Choose the browser you're using:

• Internet Explorer
• Mozilla Firefox
• Google Chrome
• Safari
• Safari for iOS (mobile devices)

You can review your 1040 in the following steps:

1. While in your TurboTax account, select Tax Tools in the left margin
2. Select Tools
3. Select View a Tax Summary
4. In the left margin, select Preview my 1040
5. When finished, select "Back"

[Brenton_H]

Thanks Sam, I'll give the 1099-R order a try--I hadn't thought of that.

I'm using the downloaded program rather than an online one, so I don't think the cookies would be an issue.

[Brenton_H]

Hey SamS1, thanks so much! I had deleted the problem 1099 several times before and reentered, but to no avail. This time I deleted them all and added the IRA first and then the 401k/457 afterward and it worked! It got me to a different screen in the step-by-step that asked the specific $ amount of the distribution that was COVID-related (rather than just asking if 'all of it' was). After that, it all worked!