I took my full IRA RMD for 2020 before the law changed to waive RMDs for 2020. I then redeposited 50% of the distribution back into the same IRA within the allowable timeframe. The TurboTax form shows that I owe taxes on the entire distribution, not just the 50% I kept out.
Do I need to mark the distribution as not an RMD, as the response indicated for a similar question from someone who rolled the entire amount back?
Correct, you need to mark the distribution as NOT being an RMD....then you will get the follow-up questions about the returning any of it to a retirement account and how much was rolled over.
Since RMDs aren't eligible for rollovers...that's why you don't get the rollover questions in going that route in the questions.
People who have pensions that automatically send out monthly payments ..... those are still RMDs...so they can't rollover any of those $$.
I unchecked the RMD box but that didn't solve the problem until I deleted the payer and re-entered the information correctly (ie not a RMD). The re-entered information correctly figured taxes on the amount kept out.
Thanks again for your guidance.