Does Turbotax online for 2020 account for RMD's ta...
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dcgrant10
New Member

Does Turbotax online for 2020 account for RMD's taken in 2020, then returned to IRA's so that taxes are not paid on the returned RMD's?

 
3 Replies
DanaB27
Employee Tax Expert

Does Turbotax online for 2020 account for RMD's taken in 2020, then returned to IRA's so that taxes are not paid on the returned RMD's?

Yes, you can enter the return of the RMD and you won't be taxed on the returned amount.

 

Please follow these steps to enter your 1099-R and RMD rollover:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type “1099-R”
  3. Click on “Jump to 1099-R” and enter your 1099-R
  4. Continue until "How much was a RMD?" and select "none"
  5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
  6. Continue answering the questions.

 

RMDs were waived for 2020. You must indicate to TurboTax that none of the distribution was RMD. If you already enter the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form. 

 

 

You can verify your entry by looking at your Form 1040 line 4 or 5:

  1. Click on "Tax Tools" in the left menu
  2. Click "Tools"
  3. Click "View Tax Summary" in the Tool Center window
  4. Click on "Preview my 1040" on the left
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Tuckerd3800
New Member

Does Turbotax online for 2020 account for RMD's taken in 2020, then returned to IRA's so that taxes are not paid on the returned RMD's?

This solution didn't work.  The IRS disallowed the money rolled back into the account and changed my refund amount accordingly.  The IRS thinks I contributed too much money becuase that is the amount shown as goingn back into the IRA.  How can I fix this?

DanaB27
Employee Tax Expert

Does Turbotax online for 2020 account for RMD's taken in 2020, then returned to IRA's so that taxes are not paid on the returned RMD's?

To clarify, you had entered the RMD as a rollover and it showed as $0 taxable with stating rollover next to it on line 4 on Form 1040 but the IRS disallowed the rollover?

 

Did you have more than one rollover into that account? There is a one rollover per year limit. Please see IRA One-Rollover-Per-Year Rule for details.

 

 

 

 

@Tuckerd3800

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