How will an RMD withdrawal early in 2020 before the waiver was announced and then put the money back in be reported not to have to pay taxes on the initial withdrawal?

[rjs]

You will report it as a rollover. It actually is a rollover.

Enter the Form 1099-R, then continue through the questions in sequence. When it asks whether the distribution was an RMD, you must answer that none of it was an RMD. You will come to a screen that asks what you did with the money. Select the first choice: "moved the money to another retirement account (or returned it to the same retirement account)."

If no tax was withheld, or if you included the amount of the withheld tax when you returned the money, say that you rolled over all of the money. If you did not replace the withheld tax, that amount will still be shown as a taxable distribution on your tax return.

Continue through the remaining screens until you get to the 1099-R summary. The full amount of the distribution will be included on Form 1040 line 4a. Any amount that you did not redeposit will be included on line 4b. The word "rollover" will appear on line 4b.

[ihavejeff]

This does not help.  all of 1099-R was RMD.  Some was retained i.e. cash, and some was redeposited i.e. a rollover.  How is this properly entered in TurboTax?

[DanaB27]

RMDs were waived for 2020 and you must indicate to TurboTax that none of the distribution was RMD for it calculate correctly in TurboTax. If you have entered your 1099-R as RMD already then you must delete and reenter the 1099-R form. Only editing the 1099-R form and changing your answer to the RMD question will not work.

1. Please continue until the question "Did you rollover all of this $xxxxx to another retirement account?"
2. Select "No, you rolled over less than $xxxxx" and enter the amount returned.

You can review Form 1040 to see if it is entered correctly on line 4:

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

[LanieC]

I indicated where asked that I included withheld taxes when taking out my RMD and then returned the entire amount.  However, when I check my withheld taxes on my Federal and State returns, they include the withheld taxes.

[DanaB27]

Just to verify when you took the RMD there were taxes withheld and when you returned the money you also paid back the taxes withheld back from other funds.

Yes, the federal taxes that were withheld on your 1099-R will show up on Form 1040 line 25b. And your state taxes withheld will show up on your state return.

Please make sure you enter the complete amount retuned when asked in TurboTax. 

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”
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.

 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. 

@LanieC

[LanieC]

Yes, I had already indicated that NONE of the money was for RMD and that I had included withholding and then returned the withholding.

I also deleted the 1099 and then redid the 1099, but my tax return still shows the withholding on both the federal and state returns (so I am getting credit for this).  Should that be the case?

[DanaB27]

Yes, that is correct. You will get a credit for the tax withheld on your federal and state return because your financial institute took that money from your disbursement and paid it to the IRS.