topic Re: 1099-R in Retirement tax questions

1099-R

smbeach — Mon, 22 Mar 2021 17:52:07 GMT

I received a 1099-R for a distribution that was subsequently rolled over to the same account under CARES Act rules. Turbo tax recognizes the the total distribution and taxes withheld as a rollover on line 4a but it also shows the taxes withheld on line 25b. Since the entire amount was rolled back to the same account and not taxable the withholding amount is overstated.

Re: 1099-R

macuser_22 — Mon, 22 Mar 2021 18:05:36 GMT

The box 4 withholding must be on line 25b for you to get credit for it. That money was already sent to the Government so you want to get it back don't you?

Re: 1099-R

MinhT1 — Mon, 22 Mar 2021 18:05:49 GMT

The tax withholding is not overstated as you have actually paid that tax when you received your distribution.

In order to repay the gross amount distributed, you had to use other funds to replace the amount of taxes withheld. So TurboTax is correct in giving you the credit for the taxes withheld.

If your total taxes withheld is more than your tax liability, you should get a tax refund.

Re: 1099-R

smbeach — Thu, 25 Mar 2021 16:40:55 GMT

That clarifies the issue. Thanks.