I received my RMD on my IRA & under the CARES Act I rolled it over, returning the funds (including tax withholdings) back to my IRA. I completed the Turbotax input showing the full amount taxable as shown on 1099R Box 2a, then marked a later section that there was a full rollover back to the IRA & Turbotax states the amount is not taxable. However, the amount isn't reducing the taxable amount to zero. How should this be handled on the input? Do I simply input the Box 2a taxable amount as zero for is there some other mechanism for doing this?
Thank you.
Report the taxable amount in 2a as it is on your 1099-R. Tell the program that the distribution was NOT a RMD. Tell it that all was returned or rolling over. Say that you were not required to have a RMD in 2020. The amount on 2a should be unchanged but if you look at your 1040 line 4b should be zero.