topic Rollover and form 8066 in Retirement tax questions

Rollover and form 8066

dws2 — Thu, 01 Apr 2021 16:51:43 GMT

I rolled-over my IRA distributions for 2020 but because I previously made non deductible contributions the software wants to calculate the taxable portion of the distributions on form 8066. It does not show the distributions as rolled over so the calculation is showing as taxable income in 4b rather than a roll over. The only way to show the rollover on 8066 is to override the distribution column but the software does not like this.

Re: Rollover and form 8066

DavidD66 — Thu, 01 Apr 2021 20:02:29 GMT

You don't want to override anything. After you enter(ed) the 1099-R, there is a page that asks "What Did You Do With The Money From [Retirement Plan]"?

Be sure you indicate that you "rolled over all of this money to an IRA or other retirement account (or returned it to the same account)."

Answering these questions correctly will result in your distribution showing up as non-taxable.

Re: Rollover and form 8066

dws2 — Sun, 04 Apr 2021 16:00:54 GMT

There are 3 IRAS. This answer worked for the 2 traditional ones but not for the inherited one (actually an inherited, inherited IRA). It still shows the distribution as taxable even though I returned the funds

Re: Rollover and form 8066

dmertz — Sun, 04 Apr 2021 17:19:10 GMT

If this distribution was originally intended to be an RMD, the CARES Act made this distribution cease to be an RMD. In this case, delete the 1099-R from TurboTax, reenter it, indicate that none of the distribution was RMD, then indicate the amount rolled over. TurboTax will automatically exclude from Form 8606 any amount that was rolled over.