Took RMD from inherited ira in 2020 then rolled the contribution back in because of the cares act. Received a 1099-r for the distribution. Howto add rollover back in?

After entering the 1099-R you can indicate that you rolled over the funds.  You can indicate this in TurboTax by following these steps:

1. A few screens after the 1099-R input screen, you should see a screen, How much of the $12,345.00 was a RMD?   
2. On the screen, Did [you] rollover all of this $XX (Box 1) to another retirement account? Mark the Yes button, if you rolled over the entire amount.
3. The next screen should say: Good news! You don’t owe taxes on your rollover.

I followed all the steps and got the "good news" note.However the amount is shown as taxable in the 1040 worksheet. Should I input the rolled over amount in some other place??

Thanks

Hmm, On mine, I was able to find the withdrawal and also the rollover on the 1040.

Try completely deleting the 1099 and re-entering and see if that works.  Its what worked for me. 

Was this issue resolved?

I completed federal form. My question is about NJ tax. I took RMD distribution for 2020 and rolled it back to the same account before federal deadline per CARES act. How NJ treat this ? Is the RMD taxed in NJ, even though I rolled back to IRA before federal deadline? How do I enter it on NJ 1040?

Of course, the income is not taxable to federal or state since you rolled it back into the account.

When you went through the federal section, you selected that it was from NJ.  You should have marked that none of it was RMD. This allowed you to mark that it was rolled back in.

The federal section carries to NJ.

When you go to the state section, you will see Retirement Exclusion Summary. It will say certain retirement income on federal is NOT taxable by NJ.

@Ilovem11

Please help.  After I mark the distribution as "none was RMD", I do not get asked whther a rollover occured. I have deleted and reentered the 1099-R a couple of times, but nothing changes. Thanks.

Did you inherit this from your spouse or from another person? Also was the distribution code a 4 on your 1099R form?

@DaveF1006  I inherited it from another person, not my spouse, and yes, code 4 was in Box 7.

In some, but not all, versions of TurboTax, TurboTax won't ask the question if you indicate that it was an inherited IRA.  Instead, when TurboTax asks, indicate that it was not an inherited IRA. 

That appears to be an issue in the online version only.   The desktop version works fine for an inherited IRA.     Saying it is not inherited is fine since nothing about that goes on a tax return at all. @centemi    -  Is this still an issue for you?

Thanks, @DawnC . I believe that your suggestion solved my problem!

This procedure not working - the second question in this turbotax section about the full rollover going back into the same or comparable account does not appear on an IRA coded as inherited.  The program takes me directly to the done screen.  I have tried reentering account, but no joy.  Any suggestions?  Thanks  Ted

When it asks if it is an inherited IRA answer NO.     Normally inherited IRA and not eligible for rollover.

I believe I had the same problem you describe. The solution that someone suggested to me and that seems to have worked is not to say that this is an inherited IRA; then everything goes as it should. 

Thank you, I think I tried this, so I'll try again.  I guess it would be easy to demonstrate what really happened here if I'm challenged by the IRS.

The answer to that question  is not for the tax return, it is for TurboTax to prevent rolling over an inherited IRA that is not normally allowed.    It is totally internal to TurboTax.

Can not get the screen asking about rollover.  So cannot remover the rolled over amount from taxable income.

Why not.

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@SBLighterink wrote:

Can not get the screen asking about rollover.  So cannot remover the rolled over amount from taxable income.

Why not.

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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 ti is allowed for 2020 only.

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

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

  I deleted the first entry of the inherited IRA and reentered it, but still did not get a screen to show that I rolled it back in.  I have been entering this IRA as inherited since 2009 returns.  Won't this trigger something with the IRS if it is not entered that way this year and then back to inherited next year?  I am using the Home & Business Version.  Shouldn't Turbotax be fixed so that the people who paid for the software don't have to enter it wrong to get it to work right?

Enter the 1099R as received.  To show the rollover you need to go into Forms mode to check the box its was a rollover back into the plan.  

• Select "Forms" in the upper right hand corner of the screen
• In the left hand column select the 1099R you are working on.
• Scroll down the screen.  Review your RMD answer.
• Continue to scroll down to the Rollover, Conversions, Recharacterizations section
• Check box indicating it was a rollover.
• In the left column select 1040 to review the amount was not taxable.

Select "Step by Step" in upper right hand corner of screen to return to interview mode.

I followed this suggestion and marked the Rollover box on the 1099R form.  BUT, when I returned to the 1040, the amount was still listed as income.  I went back to the 1099R form and under the inherited section I marked the box  "treat it as recipient's own (this is treated as a rollover)"  I did not change Box 7 from 4.  When I went back to form 1040, the amount of the distribution was included in ROLLOVER amount.  Hope this helps someone else.