topic Our RMD's were erroneously paid in 2020. the amounts, including tax, were refunded to payer within 7 days.. How do I show that in Turbo tax? in Retirement tax questions

Our RMD's were erroneously paid in 2020. the amounts, including tax, were refunded to payer within 7 days.. How do I show that in Turbo tax?

rbakes12 — Fri, 19 Mar 2021 18:28:34 GMT

Re: Our RMD's were erroneously paid in 2020. the amounts, including tax, were refunded to payer w...

MinhT1 — Fri, 19 Mar 2021 18:45:00 GMT

The RMD that you repaid are considered as rollovers to the same account and is not taxed.

Enter your form 1099-R normally. After entering your form 1099-R, click Continue until you reach the screen Did [name] repay any of this distribution?. Check the radio button which corresponds to your situation then click Continue and follow the interview. Enter the amount repaid as a rollover and it will be excluded from taxation.

You will still have the credit for taxes withheld shown on your form 1099-R.

Re: Our RMD's were erroneously paid in 2020. the amounts, including tax, were refunded to payer w...

fanfare — Fri, 19 Mar 2021 22:50:21 GMT

If your custodian reversed your distribution, then you would not get a 1099-R, and there is nothing to do.

Re: Our RMD's were erroneously paid in 2020. the amounts, including tax, were refunded to payer within 7 days.. How do I show that in Turbo tax?

VolvoGirl — Fri, 19 Mar 2021 22:51:33 GMT

Since there is no RMD required for 2020, after you enter the 1099R say it was NOT an RMD and then that you rolled it over (even if back into the same account). Was any withholding taken out? If it was then did you replace the withholding with your own money? Otherwise the withholding will be a taxable distribution itself. You will get credit for the withholding taken out on 1040 line 25b.

If you already entered the 1099-R as RMD and changing your answer to the RMD question doesn't work then you have to delete and renter the 1099-R form.