In 2019 I received a direct rollover to a qualified Non Roth IRA from a previous employer pension plan. The Gross distribution was $47,837.09. A deposit was made to my IRA for $38269.67. $9567.42 was withheld for Federal Income tax. I received the 1099R after I filed my taxes this year via Turbo Tax. My question is how do I get the $9567.42 amount withheld refunded in such a way that I am not taxed on the withholding so that I can deposit it too my Qualified IRA. I tried doing it through an amended return but I still get taxed on the 9567.42. This also is the case with my State return.
Now you have to wait until the IRS either rejects or accepts your return. If your return is rejected, you will be able to go into your account and make the necessary changes to your tax return and re-submit your return.
If the IRS accepts your return, however, then you have to wait longer until it has been fully processed and you have received your refund. THEN you can prepare an amended tax return and mail it in. You have to be able to work from that return exactly the way it was when it was e-filed originally. You will need to use a form called a 1040X. You cannot e-file an amended return. They have to be mailed, and it takes about 4 months for the IRS to process an amended return.
Be careful and don't make any changes to your return now particularly if your return was not rejected by the IRS. Wait until you hear back from the IRS about the return you just e-filed
@tarnett6078 There must be more to the story here. If you did a direct trustee to trustee rollover from one tax deferred account to another tax deferred account, there should have not been any taxes withheld.
The Form 1099-R that you received should have a code G in box 7 of the form.
@dmertz Any suggestions?
You had 60 days to deposit your own 9647 from other funds, then to wait for refund.
After that it is too late to do anything.
This was apparently not a direct rollover, otherwise there would have been no tax withholding. No tax withholding is permitted to be reported on a Form 1099-R that reports a direct rollover (code G) because whatever is being withheld for taxes is not being directly rolled over. Any taxes withheld are required to be reported on a Form 1099-R that is separate from a code G Form 1099-R. The 20% that was withheld is the mandatory minimum for a distribution that is not a direct rollover.
If the distribution was more than 60 days ago there is nothing you can do now to avoid paying tax and possible early-distribution penalty on the $9,567.42. To avoid that you had to substitute other funds to complete the rollover of that portion of your distribution within 60 days and later get back in your tax refund whatever amount of excess tax withholding you had.