@bobio02 wrote:
I have the same problem. I've imported my RMD info from Vanguard. When I go through the steps in Turbotax it asks if I have rolled over/back any of the distributions. I answered yes, for I rolled all of them back into the original IRA accounts. Turbotax then, in parentheses, states that I will not have to pay tax on these amounts. BUT, near the end of the program it clearly states that I DO owe taxes on the full RMDs, even though they have been rolled back. I spent about an hour on the phone with a Turbotax support person. She was very polite, but after many tries could not find a solution. Her suggestion was that on the form where it reports my RMD, on the next line I state that the full amount is non-taxable. Turbotax ingests this information, but after the Review states that this is not correct and I can not yet file. The support person's other suggestion is that I simply do not report the RMDs that were rolled back. This might solve the problem, but I hesitate to do this since Vanguard has sent the required RMD forms to the IRS. The end result would not be fraudulent, and financially correct, but still what I report and what the IRS has received would not mesh. From all of this I have to believe that Turbotax has a problem that needs fixing, and that their support personnel, while polite, are poorly trained. I hope they fix it soon.
I suggest that you delete the 1099-R totally and then re-enter. ANY RMD question MUST be answered that "NO RMD was required or taken".
Your 1040 form line 4a should have the 1099-R box 1 amount and 4b (taxable amount should be zero) with the word ROLLOVER next to it.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
