I took my 2020 RMD in Jan 2021 but returned it after finding out none where due this year. They withheld taxes. how do I report this?

[Bsch4477]

If you had a distribution in 2021 that would be reported on your 2021 return.  It would count towards your 2021 RMD which is not waived. 

[DanaB27 · Accepted solution]

If you took and returned the RMD in January 2021 then this will get a 1099-R 2021 in 2022 and it will go on your 2021 tax return.

If you meant January 2020 and received a 1099-R 2020 then please follow these steps:

1. Open your return
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much was a RMD?" and select "none"
5. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
6. Continue answering the questions.

RMDs were waived for 2020.  You must indicate to TurboTax that none of the distribution was RMD. If you already enter 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. 

You can verify your entry by looking at your Form 1040 line 4 or 5.

[fbeck1277]

How do I show that it was returned to my IRA?  

[VolvoGirl]

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.

[RichK2]

I have this problem.  So far I have deleted the original 1099-R and re-created a new one.  I have answered questions through #4 below but #5 does not appear on my screen.  What do I do?

[VolvoGirl]

What code is in box 7?  @dmertz 

[RichK2]

Box 7 holds a code 7 and the IRA/SEP/Simple is checked

[dmertz]

If you are using the CD/download version of TurboTax, the phrasing of the response in step 5 is different:  "I moved the money to another retirement account (or returned it to the same account)."

I know of no reason that the question described in step 5 would not appear if you deleted the Form 1099-R, reentered it manually with code 7 in box 7 and the IRA/SEP/SIMPLE box marked and indicated that none of the distribution was RMD.

[RichK2]

Problem solved; I had incorrectly responded to the question about what I did with the money.  Most of the funds were returned to the same IRA as a "rollover".  When I responded accordingly the rollover amount was classified as "nontaxable".

Thanks to all who responded.