CARES Act - returning RMD

[alex2701]

DanaB27 would you please help me with reporting in desktop version 2020 the following:

total rmd withdrawal $28,450

this is what was done with $28,450:

Fed inc tax withheld $1,700

Qualified Charitable Distributions $11,450

Roll over (roll back) into IRA  $15,300

I greatly appreciate your help

Alex

[macuser_22]

@alex2701  What type of problem are you having?   

Do you not get the RMD or QCD question?    If that is the problem is your date of birth between July 1, 1949 and June 30, 1950?  If it is then there is a TurboTax bug and there is  workaround.

[evergreens]

I am having the same problem and will appreciate any further information that any of the community can add to how to get the return of the RMD to show up in my tax return.  I did a IRA to Rorth IRA conversion after returning my RMD so the tax money taken out with the RMD will simply go to the conversion but my 1099R says I did both... Any help appreciated

[dmertz]

evergreens, a Form 1099-R that (properly) reports the combination of distributions that were rolled over and were converted to Roth is something that TurboTax is not programmed to accommodate.  To be able to use TurboTax to report this you must split and enter this Form 1099-R as two Forms 1099-R, one for the portion rolled over and the other for the portion converted to Roth.  The dollar amounts on these two separate Forms 1099-R must total to the same amounts as are in the corresponding boxes of the original.  The amounts in boxes 1 and 2a must equal each other.

[evergreens]

Thought we had until 8/31/20 to return RMD??

[evergreens]

Thank you for responding to my returning RMD  and so quickly about having the full return and then converting that amount to a Roth IRA, my 1099R had both totaled on that one form.  You tell me that I have to split it, so do I ask my financial institutions to split the transaction into two 1099Rs??? or do I take half  of the issued 1099R and treat it as one, and do the same with the other?  Evergreens

[macuser_22]

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@evergreens wrote:

Thought we had until 8/31/20 to return RMD??

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That is correct - 8/31/2020. was the cutoff date.  Nobody has said otherwise.

Did you convert ALL the money to the Roth of did you do a combination of things - (convert some and keep or roll back some)?

[dmertz]

No, you do not ask the custodian to change the Form 1099-R, they prepared it correctly.  You must split it yourself for entry into TurboTax.  If the amount rolled over and the amount subsequently converted are the same, your two split Forms 1099-R will simply have half of the originally reported dollar amount in each of the boxes 1 and 2a on the forms that you enter into TurboTax in place of the original.

[ShelleyD]

The only way to get the right questions to come up regarding what you did with the RMD is to DELETE the 1099-R you have put in, enter it again, then check that it was not an RMD. It then asks what you did with the money.

[alex2701]

Macuser22

I appreciate your help

Assume the following:

$16,000 gross distribution from IRA

$1,000 of the distribution Fed tax sent to IRS by custodian

$5,000 was donated to qualified charities (QCD)

$10,000 of the distribution was rolled over / rolled back to IRA

So my total net distribution is $6,000 ($1,000 tax+ $5,000 QCD)

And my adjusted gross income is only $1,000 (because the $5,000 is tax free)

In TT for Mac desktop version :

Federal taxes tab  > Wages and income  > pension plan withdrawal 1099R:

Q: Did did you receive form 1099R? I selected Yes (if I select No it moves me to another subject)

I then proceed fill out form 1099R:

16,000 gross distribution (in boxes 1 and 2a and check tax amount not determined)

1,000 tax withheld (in box 4)

In box 7 - (7 normal distribution) and check the IRA/SEP/simple box

Next screen “did you inherit the IRA”?  I select No

Next screen “what did you do with the money?”: selected “I moved the money to another or same account”

And then I select “I did a combination of rolling over converting or cashing out the money”

Then in “tell us how much of the $16,000 you moved etc.” I entered 10,000 in the first box “amount rolled over etc.

(I do have a form 5498 that shows the $10,000 rollover)

Done with 1099 and it shows a $16,000 Gross distribution

Form 1040 shows:

Box 4a “IRA distributions” $16,000

Box 4B “taxable amount” shows an “Explain’ stamp followed by “ROLLOVER” and $6,000 in column 4b

Box Column 11 shows adjusted gross income of $6,000

Line 25 B does reflect the $1000 Federal income tax withheld 

So my questions are:

where do I enter the qualified charitable distribution of $5,000 so that my 2020 distribution from the IRA  and my (AGI) of the $1,000 is reflected on form 1040?

Also what do I do with “Explain” stamp in box 4b?

I greatly appreciate your help.

[macuser_22]

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@alex2701 wrote:

So my questions are:

where do I enter the qualified charitable distribution of $5,000 so that my 2020 distribution from the IRA  and my (AGI) of the $1,000 is reflected on form 1040?

Also what do I do with “Explain” stamp in box 4b?

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Since you did not get the RMD and QCD questions, I will guess that your date of birth falls into the range below.   First delete the 1099-R.

2020 TurboTax presently has a bug the prevents it from asking the necessary question for those with birthdates between July 1, 1949 and June 30, 1950. As a workaround for this, with the CD/download version you can provide the QCD-amount information on the 1099-R in forms mode or in any version of TurboTax you can temporarily change your birthdate in TurboTax to something before July 1, 1949, edit the 1099-R form in TurboTax and answer the question asking how much was transferred to charity, then change your birthdate in TurboTax back to your actual birthdate.

This is due to TurboTax implementing the new IRA RMD age from 70 1/2 to 72, but overlooking that the 70 1/2 age for the QCD did not change. The TurboTax QCD question is tied to the RMD question so if you don't get the RMD question you will not get the QCD question either. This should be fixed in a future update - no telling when, but there is no downside to the workaround as long as the correct DOB is changed back after entering the QCD.

[dmertz]

The indication that the $5,000 was transferred to charity is made during the entry of the Form 1099-R.

You must be age 70½ or over at the time of the distribution.  However, for those with a birthdate between July 1, 1949 and June 30, 1950, 2020 TurboTax presently (now version R16.1) has a bug the prevents it from asking the necessary question regard transfer of the distribution to charity.  See the workaround described by macuser_22 above.

[alex2701]

Thank you for taking  the time to help out.

t'was that bug (I was taking shortcut on blank return and left date of birth blank).

thank you 

[crystalnsd66]

I have added/deleted my 1099-R multiple times now.  Logged off and on several times as well.

Details:  Entered info in Box 1, 2a, 2b box is checked

Box 7 code 4  IRA/SEP box is checked

Select "Born before July 1st, 1948"  Question How Much was an RMD?  Select "None" and that's it.   I don't get the option to say I returned it to the same retirement account.

What am I doing wrong?  Thank you!

[macuser_22]

It works for me - delete the 1099-R first.