Inherited IRA Paid back line 4b on 1040 still shows taxed.

Recording Form 1099R

I received my RMD on my inherited 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?

239

Level 15

Feb 13, 2021 3:31:39 PM

Delete the 1099-R and re-enter. Answer the RMD question that "None of this distribution was a RMD" . Select that yu moved the money, then select that the entire amount was rolled over. If there was box 4 withholding it will ask if you replaced that money with other fined.

The 1040 line 4a should have the box 1 amount and 4b should be zero with the word ROLLOVER next to it.

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Inherited IRA Paid back line 4b on 1040 still shows taxed.