Took partial RMD Turbo Tax sez not taxed

[MrVette]

I took a partial RMD before the CARES Act allowed putting the money back in. So I reported the distribution from my traditional IRA. Typically you would pay tax on that. But Turbo Tax is showing it an "IRA distributions - non-taxable".  What did I do wrong? or what is the program doing wrong?

[ColeenD3]

It is hard to know where you went wrong. Double-check all your entries. Make sure there is an amount in Box 2a, make sure the IRA box is checked, and see what code is in Box 12. The meanings of the codes would be on the back of the 1099-R.

1099-R pdf

[MrVette]

I think the problem is in the Turbo Tax program. It may have to do with answering one of these three questions:

Did you take the full RMD?

Did you take a partial RMD? (if so we'll try to help you avoid a penalty)

Were you required to take an RMD?

I said "no" to the last question since no one was required to take an RMD per the CARES Act.

[ColeenD3]

That's fine. Either way you answer the question, the program knows that you were not required to take the RMD. What do you see on your 1040 Line 4b?

[MrVette]

It shows $0 and that's the problem....but it would have been nice if the CARES Act waived tax on distribution, but I don't think it did.

[MrVette]

Changing subject slightly - 1040 5a has no number but 5b does. Looks like another glitch.

[MrVette]

looks to me like I've run into a few program bugs. This late in the filing season you would think they would all be ironed out by now. In any case, I can use your help as I am done with the tax prep except for solving these problems.

[ColeenD3]

Line 5b means it is taxable. It is not necessary to have an entry on 5a if it is all taxable. However, IRAs are on Line 4b. Pensions are on Line 5b. Again, double-check that the IRA box is checked in the program.

[MrVette]

I did check that when you suggested it the first time. The IRA/SEP/SIMPLE box is checked.

I think there is a program bug.

[ColeenD3]

What code is in Box 12?

[MrVette]

I agree that not filling in 5a will not effect the calculation but I imagine that IRS expects to see a number there if there is on in 5b.

[MrVette]

There is no box 12 on my IRA 1099-R.

[MrVette]

I wonder if the program bug is associated with the fact that I have tracked my non-deductible IRA contributions and have checked that box?

[MrVette]

Awhile back I answered that I took a Partial RMD and it lead me down the path of requesting a waiver to the penalty. So I decided not to go that route since no RMD is required.

[MrVette]

If you can't help further with this who can I contact?

BTW the program won't even allow me to override the entry and put the correct amount in 4b. So I'm totally stuck.