CARES Act - returning RMD

[nancedance]

Turbotax never takes me to that question: what did you do with the money from this payer?

How do I get there? I did put in that RMD = none

[macuser_22]

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.

Then you will get the screen to say it was "moved" and all rolled over.

Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.

[nancedance]

THIS IS the answer finally. Got it !

[TurboTaxRandell]

Strangely enough, that worked - thanks so much @tehutchinsonjr .  There must be a bug in the software.  Does anyone know how to report bugs to Intuit?

[AllenWild]

I took an RMD and had taxes withheld.  As a result of the CARES act I returned the entire amount including the amount of the taxes that were withheld.  Turbo Tax reflects the tax amount on my 1099

[macuser_22]

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@AllenWild wrote:

I took an RMD and had taxes withheld.  As a result of the CARES act I returned the entire amount including the amount of the taxes that were withheld.  Turbo Tax reflects the tax amount on my 1099

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The tax withheld should be on the 1040 line 25b to be added to your refund.

[SLYKTAX]

I shall be  72 by the end of October 2022.  I believe my 1st RMD must be  taken before April 1, 2023 and the 2nd RMD before 12/31/2024 correct? 

If my 1st RMD was taken on between 1/1/2023 to 4/1/ 2023.    Since I turn 72 in 2022, is that RMD taken in 2023 goes to TAX Year 2022 0r 2023?

[dmertz]

SLYKTAX, your second RMD will be due by 12/21/2023.  If you wait until 2023 to take your 2022 RMD, you'll be completing both your 2022 and 2023 RMDs in 2023.

Your distributions will be reported on the tax return for the year in which the RMD is distributed.  You'll want to estimate your combined tax liabilities for 2022 and 2023 to decide whether it's best to take your 2022 RMD in 2022 or in 2023.  If you are subject to Medicare Part B or Part D IRMAA, you'll also want to consider the effect on your 2024 and 2025 Medicare IRMAA.

[SLYKTAX]

Thanks

[SLYKTAX]

I didn't get it, dmertz! 

Does that mean I have to take 2 RMDs in 2023 if I didn't take one in 2022?  And that two RMDs will go to my 2023 TAX year?   But I only turn 72 at the end of October 2022.  I thought I read somewhere saying my second RMD is the following year when I take my 1st RMD on  before April 1 of  a year.

Thanks for reminder to the effects on Medicare IRMAA, I actually in a limbo in 2021 as my wife took a distribution in 2019 and our AGI exceeded by just $501.

[dmertz]

Does that mean I have to take 2 RMDs in 2023 if I didn't take one in 2022?  And that two RMDs will go to my 2023 TAX year?

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Yes.

[KCAre]

"In TurboTax, indicate that the distribution was not an RMD.  Indicate that you moved the money to another retirement account (or returned it to the same account), then indicate how much of the distribution you returned to the IRA."  WHERE?

[KCAre]

I only had a small portion of my distributions returned because most of my distributions were QCDs.  How do I indicate the amount that was returned to be reduced from my gross distributions?  I did not return the amount that had been withheld for taxes, but can I assume that will just subtract from my total taxes?

[KCAre]

"Then you will get the screen to say it was "moved" and all rolled over."

I never got this screen and so no place to input amount that was rolled over.

[macuser_22]

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@KCAre wrote:

"Then you will get the screen to say it was "moved" and all rolled over."

I never got this screen and so no place to input amount that was rolled over.

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What code is in box 7?

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.

Then you will get the screen to say it was "moved" and all rolled over.

Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.