IRA Rollover

bbowlingconner — Wed, 31 Mar 2021 14:44:48 GMT

My IRA rollover is counted as untaxed income. But being counted as income is throwing me out of eligibility for the the credit for my wife's unemployment compensation due to being furloughed due to Covid. How do I get this changed?

Re: IRA Rollover

DanaB27 — Wed, 31 Mar 2021 15:15:06 GMT

Please review your rollover entry (see steps below). If entered correctly it will show as $0 on line 4b taxable amount with ROLLOVER next to it and it will not affect your modified adjusted gross income (MAGI). Please see IRS Unemployment Compensation Exclusion Worksheet for the calculation of MAGI (scroll down).

If your modified adjusted gross income (MAGI) is less than $150,000, then you can exclude up to $10,200 of unemployment compensation paid in 2020 from your taxable income. Amounts over $10,200 for each individual are still taxable.

You will see the UEC on line 8 and the exclusion amount as a negative number.

Please follow these steps to enter a rollover:

Open you return in TurboTax
Click on "Search" on the right top and type “1099-R” in the box
Click on “Jump to 1099-R”
Continue "What did you do with this money from this payer?" and select "I moved the money to another retirement account (or returned it to the same account" the select what applies to you.
Continue answering the questions.

topic IRA Rollover in Get your taxes done using TurboTax

IRA Rollover

Re: IRA Rollover