I used a 50k 60 day rollover from my 401k, got taxed appropriately at 20%, and rolled it into an IRA (paid back the 10k to roll full 50k). Can I claim the orig 10k tax?

60 Day rollover, 401k to IRA, was told I could claim the 20% taxed since I rolled it back in within the 60 days, but cannot find an appropriate place to report it.

622

Expert Alumni

Jun 6, 2019 5:12:03 AM

Yes.

Your 1099-R will show $50,000 in income, and $10,000 in tax payments. After entering the 1099-R, you are asked if you rolled the money into another plan. When you indicate that you rolled $50,000 into a Traditional IRA, your tax liability is $0 and you have a payment of $10,000.

The $10,000 is a federal tax payment on your return along with all of your withholding and estimated payments, and you are adding no additional income.

Do you have the 1099-R? This situation is accounted for with the entry of the 1099-R and just a few questions after that. The $10,000 should be shown in Box 4. That's the only place you need to enter it.

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I used a 50k 60 day rollover from my 401k, got taxed appropriately at 20%, and rolled it into an IRA (paid back the 10k to roll full 50k). Can I claim the orig 10k tax?