The new tax bill eliminated the RMD I owed for 2020 filing. What happens to the federal tax that was withheld by the custodian when the RMD was issued to me?

[macuser_22]

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@chuckolson44 wrote:

I put back my RMD for 2020 in a timely way.  My 1099-R included the RMD in my taxable distribution.  Where/how do I reduce the taxable distribution by the amount of my redeposited RMD? 

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Delete the 1099-R and re-enter.     Answer the RMD question that "None of this distribution  was a RMD",  because is was not - there was no RMD.   Then you shiuld get the screen that allows you to roll it back.

[CharlieBarr]

I see there is some similarity, but Where does TurboTax adjust for this?   I took a Partial RMD before the law was signed.  My broker had already sent the Tax portion to IRS and State.  I reinvested the full RMD back into the IRA, but I am looking for where TURBOTax allows me to claim the amount of TAX already paid (per the 1099-R).

I don't see Turbo accepting this or crediting my forms.

2nd topic. How to I obtain Turbotax help on the SELLING of two rental houses during the 2020 tax year?

I also sold undeveloped lots in Hawaii, and a lot in Florida.    How to show that?

Thanks 

[macuser_22]

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@CharlieBarr wrote:

I see there is some similarity, but Where does TurboTax adjust for this?   I took a Partial RMD before the law was signed.  My broker had already sent the Tax portion to IRS and State.  I reinvested the full RMD back into the IRA, but I am looking for where TURBOTax allows me to claim the amount of TAX already paid (per the 1099-R).

I don't see Turbo accepting this or crediting my forms.

The tax withheld in box 4 on your 1099-R is applied to the 1040 line 25b to offset any tax owed or add to your refund.

[CharlieBarr]

Where does TT account for this strange Don't pay, when we already did pay some. How to answer the TT questions so that TT will treat correctly?

It was a Partial RMD and NOT a Full RMD and I don't want TT to help me fill out a bogus form explaining why I complied with the law change.  It does not make sense and no way to answer TT's perfectly good questions IN A NORMAL IRA YEAR, HOWEVER TOTALLY WRONG FOR 2020.  TurboTax needs to change that portion of the 2020  program or tell us how to answer CORRECTLY

Thanks      Should have been no surprise to the programing staff IMHO

[CharlieBarr]

Sounds like TT is taking the easy way out?   Putting down an event that did not happen (ROLL OVER) instead of fixing the problem for 2020 and making a difficult situation even more confusing to your vast customer set.

[CharlieBarr]

But if you already had a Partial RMD (being pro-active), and the BROKER did the right thing (paid to IRS and State) the tax, how does TT allow you to get credit the tax. The brokerage cannot request a refund from the IRS or State.  TT needs to fix this.  

Yes after the fact, the law became law and for those that had not paid, it is simple they don't have to.

[CharlieBarr]

Does not get the TAX Paid back or credited (or if credited, where does TT hide that fact?)

[dmertz]

A reportable rollover indeed happened.  The partial distribution that you received that was originally intended to be part of your RMD for 2020 ceased to be any part of an RMD upon the CARES Act becoming law.  Whatever you did with it must be reported as if it was not an RMD (because, by law, it was not an RMD).

The amount of tax withholding reported in box 4 of your Form 1099-R is credited back to you on line 25b of Form 1040.

[VolvoGirl]

But did you get a 1099R with the withholding in box 4?  You just enter the 1099R exactly as shown.  You say NONE of it was for the RMD since the RMD was not required this year.  Then you say how much you put back ie: Rolled over.  You will still get credit for the withholding on 1040 line 25b.  When you put it back did you also replace the taxes that were taken out?  If not, then the tax withholding becomes a taxable distribution by itself.

[macuser_22]

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@CharlieBarr wrote:

Where does TT account for this strange Don't pay, when we already did pay some. How to answer the TT questions so that TT will treat correctly?

It was a Partial RMD and NOT a Full RMD and I don't want TT to help me fill out a bogus form explaining why I complied with the law change.  It does not make sense and no way to answer TT's perfectly good questions IN A NORMAL IRA YEAR, HOWEVER TOTALLY WRONG FOR 2020.  TurboTax needs to change that portion of the 2020  program or tell us how to answer CORRECTLY

Thanks      Should have been no surprise to the programing staff IMHO

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Did you read the posts above?    There is nothing to change.    There is no "form" to fill out.    For IRA's there WAS NO RMD for 2020 so the correct answer to the RMD question  for an IRA is "none of this distribution was an RMD" or "RMD not required" for the 2nd RMD question. 

  That is the correct answer.  It is already in the program.

Delete the 1099-R to reset then answers and re-enter.

[jmkrusher21]

I received my RMD prior to the CARES act in 2020.  My financial advisor said I could return it or a portion of it.  I returned a large portion of it, but not 100%.  Also, I had the RMDs taken from 2 different accounts.  I am having trouble figuring out how to document that I rolled over a large amount of the RMDs from 2 accounts and had the federal withholding taxes already sent in.  How do I do that.

[VolvoGirl]

Just enter the 1099R you got exactly as shown.

Since there is no RMD required for 2020,  after you enter the 1099R say it was NOT an RMD and then that you rolled it over (even if back into the same account).   You will get credit for the withholding taken out on 1040 line 25b.

If you already entered 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. 

[RChisholm]

I know there was no RMD for 2020, but there WAS real federal tax withheld and sent to the IRS despite NO RMD for 2020.  I returned the entire RMD distribution back to my account promptly after the CARES Act., the gross amount returned included the tax amount withheld.   So what happens to that tax withheld, essentially twice paid?

[macuser_22]

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@RChisholm wrote:

I know there was no RMD for 2020, but there WAS real federal tax withheld and sent to the IRS despite NO RMD for 2020.  I returned the entire RMD distribution back to my account promptly after the CARES Act., the gross amount returned included the tax amount withheld.   So what happens to that tax withheld, essentially twice paid?

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When you entered the 1099-R and said that is was NOT an RMD and you rolled it back then any tax withheld in box 4 would go on the 1040 tax return line 25b and be applied to offset your tax liability or add to your refund.   You do not loose it.

[marthacarter]

I want to complete my 2020 taxes.