CARES ACT RMD returned, but IRA basis reduced

[R30]

I returned the RMD to my IRA, receiving a 1099-R and 5489 showing the distribution and rollover.  TurboTax correctly shows that the distribution is not taxable.  But TurboTax reduces my basis by that amount.  Weird.  Please help.

[macuser_22 · Accepted solution]

You should not have a 8606 form at all for a CARES act rollover.

Delete the 1099-R form and check you forms list.  If there is a 8606 there, is there another 1099-R that created it?

Re-enter the 1099-R for the rollover and be SURE to answer the RMD question that "NONE of this distribution was a RMD" because it was not.    You should go directly  to the screen for a rollover and never get to the "basis" questions.

[R30]

Thanks for the help!  You solved the problem.   The basis issue resolved itself when I followed your instructions on the RMD question.  There were no basis questions in the interview.  I had noticed the change in the 8606 and couldn't figure out why it was incorrectly stating the basis.

Be well.