TT NOT DEDUCTING IRA PUT BACKS WITHIN 60 DAYS OF WITHDRAWAL.

[bumbacat]

TT IS NOT ALLOWING A CREDIT FOR AMOUNTS RETURNED TO THE IRA WITHIN 60 DAYS OF WITHDRAWAL.  TT SAYS OUR LEVEL OF "EARNINGS" MAKE ANY IRA CONTRIBUTIONS NOT DEDUCTIBLE FOR TAX PURPOSES.  THE 1099R SHOWS GROSS WITHDRAWALS, NOT TAKING INTO ACCOUNT THE PUT BACKS.  HOW DO WE RECEIVE CREDIT IN 2021 FOR AMOUNTS RETURNED BEFORE THE 60 DAYS EXPIRED?  EVEN IF WE RECEIVED A 5498, WE WANT TO DEDUCT AMOUNTS RETURNED TO REDUCE TAX LIABILITY.  PLEASE HELP.  NETTING THE ACTUAL 1009R AMOUNT WITH WHAT WE PUT BACK WOULD WORK, BUT WOULDN'T THAT RAISE FLAGS WITH THE IRS (IE AMOUNT REPORTED DOESN'T MATCH 1099R AS REPORTED BY BANK)?

[VolvoGirl]

Do not enter it as a new contribution under deductions.  Just enter the 1099R.  After you enter it then it will ask what you did with it.  Say you rolled it over or moved it to another account even if you put it back into the same account.

What code is in box 7?

[macuser_22]

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@bumbacat wrote:

TT IS NOT ALLOWING A CREDIT FOR AMOUNTS RETURNED TO THE IRA WITHIN 60 DAYS OF WITHDRAWAL.  TT SAYS OUR LEVEL OF "EARNINGS" MAKE ANY IRA CONTRIBUTIONS NOT DEDUCTIBLE FOR TAX PURPOSES.  THE 1099R SHOWS GROSS WITHDRAWALS, NOT TAKING INTO ACCOUNT THE PUT BACKS.  HOW DO WE RECEIVE CREDIT IN 2021 FOR AMOUNTS RETURNED BEFORE THE 60 DAYS EXPIRED?  EVEN IF WE RECEIVED A 5498, WE WANT TO DEDUCT AMOUNTS RETURNED TO REDUCE TAX LIABILITY.  PLEASE HELP.  NETTING THE ACTUAL 1009R AMOUNT WITH WHAT WE PUT BACK WOULD WORK, BUT WOULDN'T THAT RAISE FLAGS WITH THE IRS (IE AMOUNT REPORTED DOESN'T MATCH 1099R AS REPORTED BY BANK)?

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A 60 day rollover is NOT a contribution.   There is nothing to deduct - it is just putting the money back and is not taxable.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR  Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

If this was a rollover or conversion, answer the question that you moved the money to another retirement account (can be the same account). The screen will open up with choices of where it was moved.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

It will show as income on the summary screen which shows gross income, not taxable income.

The income will be reported on line 4a on the 1040 form with the word “ROLLOVER” next to it if it was a rollover.

The taxable amount will go on line 4b.  In the case of a rollover, that amount will be zero.

[jgibz]

Yes, put the distribution info in. Next screen will ask what you did with the distribution. If you rolled it back in, choose how much and you will see your refund amount go up. TT will not tell you up front, you have to figure it out

[flw924]

I did that but I am still be taxed for the entire 2024 withdrawal I made even though I returned 2/3 of the $$ to the same account.  

How do I lower my taxes???

[VolvoGirl]

If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. Check lines 4b & 5b for any taxable amounts. For a rollover line b should be zero (or the 1/3 taxable amount)  and the word Rollover by it.

[flw924]

the amount I owe did not go down.  I returned 66% of what I took from my IRA and it taxed the whole amount.

[flw924]

No, it is not there.  The 30% left as withdrawn is actually listed in TT as 100% taxed.