Under the CARES ACT, I returned my RMD in my IRA , technically a 2020 Rollover. But Turbo Tax is not allowing me to report the Federal Income tax withheld in Box 4 1099

[JamesSutton]

Or on Sch. 1, line 8, sub line 22, enter as negative amount the amount of RMD that you recharacterized in 2020 pursuant to CARES Act. This will let you get your correct tax liability. Don't know if this would work for filing purposes, though there's a tab to enter an explanatory statement. If you had taxes withheld and recharacterized the whole RMD including taxes on your RMD, you made a contribution to your IRA, which is a no-no if you're a senior & complicates your return if you aren't or if you made maximum contribution for 2020. No idea how to account for this.

[LeeB2]

Check the earlier reply post by dmertz. His procedure solved my issue, and my line 4b was corrected. Thx.

[dmertz]

There is no need for a workaround; the proper way to enter the rollover has already been described above.

JamesSutton's workaround is not viable.  If used, the IRS Automated Underreported System will flag an underpayment of tax and a distribution that would have been subject to an underpayment penalty if not rolled over will still have the penalty included on the tax return.

[MrMike53]

Thank you for the answer - wish TurboTax would have explained that in the instructions.  It does mention the Cares act but not on the question about the RMD.  

[chiefhosa]

how do I report the return of my 2020 rmd in turbo tax

[MrMike53]

I am not in front of my computer but you must first enter your 1099-R. It should have boxes 1, 2a and 7 filled in. If you paid taxes they should also be filled in. I also assume box 7 is listed as “7” for normal distribution. 

I (actual my parents) paid their RMD back including all taxes last year.   As You go through the income section of Turbo Tax you come to withdrawals from your IRA. You go through this section just as if you took the RMD.   At one point it asks: Did you take an RMD ... at this point you answer NO ! 

it is counter intuitive as there are other questions that ask about the cares act. But when I did this - it finally handled it correctly and listed the money I put back as a Roll Over. 

Let me know if you are still having an issue and I will re-answer with my computer opened and list every step and answer. 

Hope this helps. 

[Irene2805]

To indicate that you returned your required minimum distribution (RMD) to your IRA, please follow these steps:

TurboTax Online

1. Click on Federal > Wages & Income.
2. Scroll down to the Retirement Plans and Social Security section and click on the Start/Revisit box next to IRA, 4701(k), Pension Plan Withdrawals (1099-R). 
3. If you've already entered one (or more) 1099-Rs, you will see a screen Your 1099-R Entries.  Click the Edit link next to the 1099-R you wish to review.   
4. On the screen, Tell us if you moved the money through a rollover or conversion, mark the radio button,  I rolled over some of all of it to an IRA... and click Continue.
5. A few screens after the 1099-R input screen, you should see a screen, What Did You Do With The Money From 401k institution?  Mark the radio button next to I moved the money to another retirement account (or returned it to the same retirement account).  
6. On the next screen, Did you rollover the gross amount of $XX (Box 1)...  mark the appropriate radio button and click Continue.

TurboTax CD/Download

1. Click Federal Taxes > Wages & Income > I'll choose what I work on
2. Scroll down to the Retirement Plans and Social Security section and click on the Start/Revisit box next to IRA, 4701(k), Pension Plan Withdrawals (1099-R). 
3. If you've already entered one (or more) 1099-Rs, you will see a screen Your 1099-R Entries.  Click on the Edit link next to the 1099-R you wish to review.   
4. A few screens after the 1099-R input screen, you should see a screen, What Did You Do With The Money From this Payer?
5. Mark the radio button next to I moved the money to another retirement account (or returned it to the same account).
6. Below the grey line, click the radio button next to I rolled over all of this money to an IRA or other retirement account (or returned it to the same account).  Click Continue.

@chiefhosa

[MrMike53]

I see that someone listed a set of steps below - but my experience is different.  I will list what I had to do.  I am using the Deluxe Version on a PC that I loaded off the disk.

The first three steps are the same:

1. Click Federal Taxes > Wages & Income > I'll choose what I work on
2. Scroll down to the Retirement Plans and Social Security section and click on the Start/Revisit box next to IRA, 4701(k), Pension Plan Withdrawals (1099-R). 
3. If you've already entered one (or more) 1099-Rs, you will see a screen Your 1099-R Entries.  Click on the Edit link next to the 1099-R you wish to review. 

But this is where things are very different:

1. I get a screen that asks:
   Did <first name> Inherit the IRA from <Account Holder>
   Answer with a YES or NO: In my case the answer is NO
2. Here is where the steps differ from below - as I get a screen that asks:
   About the Retirement Account
   <Account Holder>
   (long sentence about the RMD) and then
   Was this withdrawal an RMD for 2020?
   (sentence explaining about the cares act)
   Answer with a YES or NO: This is where I first answered YES and the program never gave my credit for my "Rollover back to my IRS" nor did it credit the Federal TAX I sent in.  When I answered NO and then went through all the other steps/questions I got full credit for my rollover and the tax I paid showed up as a REFUND
   
3. Next question deals with: Transfer to Charity?  In my case it was a NO
4. Next screen asks:
   What did You Do With the Money From <Account Holder>?
   In this case you want to indicate you rolled it over:
   <first name> moved the money to another retirement account (or returned it to the same retirement account)
   
   There is a second question about what you did with the money
   Choose which of these applies:  In my case I replied with ...
   <first name> rolled over all of this money
5. You should then get an information screen telling you:
   You will not have to pay tax on your <states the amount of money> rollover from <Account Holder>
6. There is one more screen that follows: Asking if you deposed the <federal tax amount> in addition to the <remainder of the distribution>  and you need to answer yes or no.
   In my case I returned all of it including the taxes.
7. The program then cycles back to the page showing all your 1099-Rs.

Hope this helps and I am not sure why my experience was different from Irene2805 - but it worked

[macuser_22]

---

@MrMike53 wrote:

1.  

Hope this helps and I am not sure why my experience was different from Irene2805 - but it worked

---

Irene ignored that this was a RMD and did not say to answer "NONE of this distribution was a RMD" because it was not.    The *only* reason for the RMD question at all is to prevent rolling over any part of a RMD which is not allowed, therefor to be able to roll back what was "thought" to be a RMD, but was actually not after the law was changed, the question MUST be answered that it was not a RMD to allow the rollover.

[bobscheifele]

I don't see these results when I follow the same directions.

After entering the 1099R data and answering the questions, the amount is not shown in 4a, but is shown in 4b which is taxable income.  The total income number on line 9 includes the RMD number because it is in 4b.

IS THERE A CORRECTION COMING FROM TURBO TAX?  COULD SOMEONE FROM TURBO TAX ADDRESS THIS ISSUE.

Several articles in newspapers address the issue when completing the tax forms without computer software.  Namely, they say to simply not include the RMD in 4b and explain that it was a rollover.

TURBO TAX, HELP!!

[macuser_22]

That is correct - you do NOT include the RMD.  If you say that it was a RMD then it cannot be rolled over.

The software works fine.    Delete the 1099-R and re-enter it.  When you get the RMD question you must check the box that says "None of this distribution was a RMD", then on the next screen say you moved the money and choose that all of it was rolled over. 

[schadtjb]

This worked perfectly.  Thanks.

[kh221]

Exactly the explanation I've been looking for.

[goatsnvairs]

I re-entered my 1099R and marked it as not an RMD.  I am not getting questioned whether it was rolled over by TurboTax.  When I review and wrap everything up it is still showing as taxable in 4b.  What am I doing wrong?

[dmertz]

goatsnvairs, what is the code in box 7 of the Form 1099-R provided by the payer?

Is the IRA/SEP/SIMPLE box marked?