Turbotax 2020 saying I owe taxes on RMD returned per CARE act

[psyadam]

It shows the Roth return as a Rollover but not for the Beneficiary IRA return

[dmertz]

When TurboTax asks if the distribution was from an inherited IRA, answer No.

[psyadam]

So even though it's a beneficiary ira i should say 'no' not inherited?

Been listed as inherited for years.

Workaround or ... ?

[dmertz]

Yes, it's a workaround since distributions to non-spouse beneficiaries are not normally permitted to be reported as having been rolled over.

[psyadam]

OK I can do that, but then it’s going to ask for my age, etc. which won’t jibe with the 1098 or with me being too young to take distributions. 

[MarilynG1]

@psyadam When entering your 1099-R, indicate that 'none of this distribution is RMD'.

Since there is no RMD in 2020, your age won't be a factor. 

Click this link for more info on RMD for 2020. 

[psyadam]

I understand this is a workaround, yet being the 1099-R, Box 7 says 'Death' I'm wary that my stating this isn't inherited IRA will trigger an audit.

Are there any other options?

Is Intuit working to fix this issue?

Thanks.

[psyadam]

Okay, got support from Intuit. After quite a bit on the phone, was informed to click the 'non-deductible' contribution box and choose 'zero' amount and that did the trick.

[stampless1]

If the amount you enter in TT as the taxable amount is not equal to the 1099-R 2a amount, this will be a flag to the IRS -- Yes ?

[dmertz]

stampless1, the amount you must enter in box 2a of TurboTax's 1099-R form is the amount shown in box 2a of the Form 1099-R provided by the payer.

For a rollover of an IRA distribution there will be a ROLLOVER notation next to line 4b to indicate why the taxable amount on that line is less than the amount reported in box 2a of the Form 1099-R reporting the distribution from the traditional IRA.

Note that if the Form 1099-R shows no tax withholding, the IRS doesn't see your actual entries, it only sees the taxable result on Form 1040 (and possibly Forms 8606 and 5329, depending on the circumstances).

[psyadam]

Thanks. I was worried for a moment there. Assume the TurboTax support person knew what they were doing.