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Level 1
posted Feb 20, 2021 7:49:41 AM

I took a RMD but returned it due to the CARES act. Why is Turbo Tax showing the RMD as income? I can't figure out what I am doing wrong.

I even changed box 2 on the 1099R to zero but it still shows up as taxable income.

0 1 179
1 Replies
Expert Alumni
Feb 20, 2021 8:02:44 AM

Please follow these steps to enter your 1099-R and RMD rollover. Please enter the 1099-R as shown on the form.

  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