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

[goatsnvairs]

The code is 4, the box is checked.  Thats how I entered it too.

[dmertz]

Yeah, certain versions of TurboTax have a problem with allowing you to report the rollover of a distribution from an inherited IRA since a non-spouse beneficiary is not normally permitted to do such a rollover.  If you rolled over the entire distribution including substituting other funds for any amount withheld for taxes, tell TurboTax, when asked, that this distribution was not from an inherited IRA.

Apparently TurboTax developers are not yet recognizing this problem despite different versions of TurboTax behaving differently.

[goatsnvairs]

I'm using turbotax online and in your scenario above I never get prompted as you state in step 4.  It doesn't ask me that anywhere....

[goatsnvairs]

Also please note this is an inherited IRA, so I may get sent in a different loop by the software that never comes back to the question "was this end rolled back in"...

[goatsnvairs]

The problem is I never get asked the question, so I don't even get to say its not inherited....

[DawnC]

Have you tried deleting the 1099-R that is in TurboTax and then re-entering it so you go through all of the questions again?    @goatsnvair

[macuser_22]

Delete the 1099-R and re-enter.  The question is one of the first questions.

[goatsnvairs]

OK, dmertz fixed the issue.  It was an unaccounted for loop by ttax.  If you click "inherited IRA" you get sent in a different direction.  I reloaded it, did not check the inherited box, and boom, I got the correct questions and it worked, no longer taxable and the 1040 says "rollover".  Thanks dmertz!!!

[goatsnvairs]

WORKED!  Thanks dmertz, udaman!  Do not click inherited button!

[mikewinnick1]

This is nuts. I did the same thing and it worked but will the IRS accept that even if Quicken transmits my form?

[macuser_22]

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@mikewinnick1 wrote:

This is nuts. I did the same thing and it worked but will the IRS accept that even if Quicken transmits my form?

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What does "Quicken" have to do with it - that is a different company and they do not do tax?

The question and answer do not go on a tax return, they are only internal to TurboTax for screen navigation in the interview.

[mikewinnick1]

That is exactly what I saw. Basically I said on the 1099 question that I took, say $100,000, and $50,000 of it was returned to 'the same or other IRA'. So it showed on 4A $100,000 taken and on 4B $50,000 taxable.

This government at it's worst and Quicken a close second, though I think it's the IRS not getting their form or advice out quicker and easier to understand

[goatsnvairs]

The IRS is not going to see the machinations behind the data.  All they care about is the "rollover" statement.  I think we're good.

[vdalbora]

I import all my 1099 forms from my brokerage accounts into Turbo Tax. I returned my RMD back to my IRA account and Fidelity sent me a Form 5498 Which Turbo tax doesn't use. 

So in Turbo Tax I went to the 1099 R form that was imported and scrolled down to rollovers.... and box B1 says check this box if entire distribution was rolled over. And that fixed it.

[retsin2000]

But we can't get to forms in the online version though, right?

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I've upgraded to the live version mostly to try to get an answer with how to do this. In fact this is the first year I've done online because I wanted the live help specifically for this issue as I anticipated it being weird. So far the live folks haven't been able to give me an answer. The latest guy I talked to was super friendly and understood the issue and has indicated he will have an answer but nothing yet.

I'm hoping if I have to go back to an installed software version that I won't have to pay for both that and online and for the help which has so far not been able to help (although I know they have tried and are trying.)