RMD in turbotax 2020 doesn't seem to address that rmd not required due to cares act

[benandiana65]

I'm working on 2020 taxes but the program says if i didn't take rmd there is a penalty.  but that's not the law due to temporary cares act changes.  so I'm not sure how to complete that section.

[macuser_22 · Accepted solution]

There is no RMD for 2020 at all so answer the RMD questions that none of it was a RMD or a RMD was not required.

[dmertz]

If you are a non-spouse beneficiary of a distribution from an IRA, took a distribution that was intended to be an RMD, returned that distribution to the IRA and you have already indicted to TurboTax that this distribution was an RMD, you'll need to delete the 1099-R from TurboTax an reenter it, making sure to indicate that it was not an RMD.  Even though the distribution was originally intended to be an RMD, because RMDs for 2020 were waived, the distribution is not actually an RMD.

[benandiana65]

thanks - sounds good.  We didn't take any distributions from our IRAs so I'll just check the box that we were not required to and leave it at that.

[gdpeter]

That's all well and good, but does TurboTax properly treat the RMD money I took out of my IRA before the CARES Act announcement and then returned to my IRA from other cash so it isn't taxed as a regular withdrawal from my IRA.  The CARES Act authorized this return without penalty.

[AmyC]

Yes, the program can handle the RMD correctly even though it asks. You should mark that none of it is RMD. Since it wasn't, because there is no RMD for 2020. Be sure to answer the questions about putting it back in. The IRS gets end of year balance statements from brokerages and you just want to keep it clean and simple.

@gdpeter

[deeG]

I took a partial RMD before the Cares Act and didn't return it to my IRA, so how do I handle this? I keep getting that I will owe a penalty for not taking the RMD. I am a Senior.

I called H & R Block about this and they said to not file my return like that until it is fixed. Not sure what to do. Will the form 8915 handle that?  

What block would I select....I took NO RMD?? I can't get anyone online who knows what to do.

[macuser_22]

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@deeG wrote:

I took a partial RMD before the Cares Act and didn't return it to my IRA, so how do I handle this? I keep getting that I will owe a penalty for not taking the RMD. I am a Senior.

I called H & R Block about this and they said to not file my return like that until it is fixed. Not sure what to do. Will the form 8915 handle that?  

What block would I select....I took NO RMD?? I can't get anyone online who knows what to do.

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

There was no 2020 RMD so answer the RMD questions that "none of this distribution was a RMD" or "RMD not required" to eliminate that.

[Pati2]

I tried to reset the questions by deleting the form, but it didn't work to reset the questions.  It is still deducting the RMD that was rolled over and including it in the income and tax calculations.  Any other ideas on how to address this so the software handles it correctly?

[macuser_22]

Where do yiu see it as taxable?  1040 line 4b?

Delete the 1099-R you entered and re-enter.

Answer the RMD question that "None of this distribution was a RMD" or "RMD not required" depending on the TurboTax version - because it was NOT a RMD, there were no 2020 RMD's.

If this is an inherited IRA then answer the "Is this IRA inherited" with NO. The purpose of that question is to PREVENT rolling an inherited IRA over, but is allowed for 2020 only.

Then you will get the screen to say it was "moved" and all rolled over.

Also check the box that this was NOT a COVID related distributions - it was a RMD that was returned.

That will put the 1099-R box 1 amount on the 1040 form line 4a with the word ROLLOVER next to it.

[Pati2]

The piece that was missing for our situation in the other posts was because it is an inherited IRA and I was answering Yes and not getting the rollover questions.  Thank you so much for your assistance!  Very much appreciated!!