IRA Distribution and Repayment - Form 1099-R

After you enter the 1099R say it was not an RMD and then that you rolled it over (even back into the same account).  Was any withholding taken out?  If it was then did you replace the withholding with your own money?  Otherwise the withholding will be a taxable distribution itself.

Did you indicate that this distribution was from an IRA or not?

When you were completing the section after entering the 1099-R, did you indicate that you moved his money to another retirement account?  If so, did you indicate that all the money was rolled over?

 

If for an IRA -

If you answered the questions correctly for the IRA withdrawal it would have entered the amount on Form 1040 Line 4a, the word ROLLOVER below the distribution amount and a 0 (zero) on Line 4b.

If from a pension or an annuity -

If you answered the questions correctly for the pension or annuity withdrawal it would have entered the amount on Form 1040 Line 5a, the word ROLLOVER below the distribution amount and a 0 (zero) on Line 5b.

Thank you for your reply. 

Could you explain how I will be showing the repayment?

Thanks again.

Thank you.

Make sure to look at the actual tax form and not just at the summary page where the total distribution (not taxable amount) is listed which can confuse you.  

 

 

You can peek at only  the Federal form 1040 and the summary of the state info by going here:

1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2)  then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"

Then hit the "Back" on the left side to get back to your tax entries.

                                              

             

To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.

                    

To pay the TurboTax online account fees by credit card, without completing the 2020 return at this time, click on Tax Tools >>> Tools  and then Print Center.  Then click on Print, save or preview this year's return.  On the next page, to pay by credit card, click Continue.  On the next screen it will ask if you want Audit Defense, if you do not want this option just click on the Continue button.  The next screen will ask for all your credit card information so you can pay for the account.

My spouse took a small IRA distribution (not early, she was 59 1/2) in 2020 ($5000). She lost her job due to covid. The distribution can be classified as a Covid related distribution and thus special tax treatment (spreading the income out over 3 years if you would like to do this). In Jan 2021, she decided she could repay $4000 back to the IRA, allowed by the CARES Act and she did this. So, she has a repayment to the IRA and a distribution of $1000. I use Turbotax (TT) premier, desktop.  So the 1099r for $5000 is straight forward in TT. But in addition to entering the transaction in TT for the 1099r, is the $4000 repayment then also treated as a contribution where we would get a deduction? The only thing I can find on the IRS site is treat a repayment as a contribution.

If you did not roll the money back into the IRA within 60 days, then it would be considered a contribution and you can choose to apply it to 2020 even though it was completed in 2021.  That choice is yours, but you must make sure your plan administrator knows what year the contribution belongs to.

• Per the CARES Act: If you withdraw and complete the rollover within 60 days, you can rollover your distribution into a Traditional IRA. You would not be able to rollover into a Roth IRA account without tax consequences.

Right now, it's the penalty that is waived, which does not apply in this case, and the ability to report it over a three year period instead of all at once.

 

The following links will show you the deduction limits and income thresholds.

• IRA Deduction and Contribution limits - Covered by a Retirement Plan at Work
• IRA Deduction and Contribution limits - Not Covered or One Spouse is Covered by a Plan at Work

If you qualify, then you should enter an IRA contribution for 2020, once you confirm the year with your financial agent as noted above.

 

To enter your 2020 IRA contribution (money you put into your IRA), open your return, search for ira contributions and select the Jump to link in the search results. We'll take you to the Traditional IRA and Roth IRA screen where you can start the IRA interview.

How do I report the repayment?

1. After you enter your 1099-R,TurboTax, will ask questions about the distribution.  
2. TurboTax will then ask What did you do with the money?  
3. Check the box saying you moved it to another retirement account (or returned it to the same account).  
4. The next question will be how much of it you put back, give the number
5. These two answers will make the amount repaid not taxable

After you open the tax return

Go to Wages and Income

Click on Retirement plans/Social security/IRA

Click on 1099-R you want to edit

Click on the link for more information

 

IRA