RMD

[dh3909]

I returned my RMD funds to my mutual fund IRA, as per the CARES Act. However, my mutual fund had already sent the taxes withheld to the government, so I only returned  the amount less the taxes. The 1099R does reflect the gross amount and the taxes withheld. I entered both figures in the appropriate place.  Do I have to do anything else? I am assuming everything being equal, that I should show that I have overpaid in taxes since there is no revenue attached to them? 

[ColeenD3]

Yes, when you return the distribution, you also have to include the tax withheld or else you are short. That amount will be considered a distribution. You do, however, have the fact that you have paid taxes already. 

Enter the 1099-R exactly as it appears. 

Please see this answer from dmertz:

If you do a direct rollover, the plan should not withhold anything for taxes.  The plan is required to offer to perform a direct rollover.  Assuming that this is a taxable direct rollover from a traditional account in the plan to the Roth IRA, you'll separately want to make an estimated tax payment to avoid underpayment of taxes.

If you instead receive a distribution paid to you that you intend to roll over indirectly within 60 days, the plan is required to withhold for taxes 20% of the amount that would be taxable if you did not roll the distribution over.  To complete the indirect rollover of the entire distribution you would need to substitute money from another source to make up for the portion withheld for taxes.

If taxes are withheld and you do not substitute other funds to complete the rollover of the entire distribution, the amount withheld for taxes will be subject to income tax and an early-distribution penalty.

Before the plan makes any distribution, the plan is required by law to provide you with this information unless you waive that obligation of the plan

[dh3909]

Let me try and explain it a little better. In January 2020 I received my RMD funds minus the taxes withheld. Because of the CARES Act, several weeks later, I returned the funds to my IRA that I had received in January. I did not add any additional money to cover the taxes, which had already been sent to the gov. Besides reporting the info on the 1099R, is there anything else I should do? Thanks. 

[DanaB27]

No, if you entered all your information from your 1099-R and entered the amount that you returned (distribution minus taxes withheld) then there is nothing else you need to do. Please review these steps of the RMD rollover:

1. Open your return
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 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. Enter the amount returned an continue answering the questions.

RMDs were waived for 2020. 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. 

You can verify your entry by looking at your Form 1040 line 4, the returned part won't be included in line 4b. You withheld federal taxes will be shown on line 25b.

[dh3909]

Thank you. You've been a big help.