jeancar
Level 2
04-08-2022
10:22 AM
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Client older than 59.5 took $50K distribution from IRA. Within 60 days, he returned $20K to the same IRA. 1099R reflects box 1 and 2a as $50K code 7. How do I reflect the returned $20K so it is not taxed?
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qbteachmt
Level 15
04-08-2022
12:35 PM
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By using the 1099-R worksheet, and filling in the info that there is a Partial Rollover. The issuer of the 1099-R doesn't Net the amount; they issue what they know happened = took the distribution. The preparer follows up with what else happened = Rolled over. It's not "returned" in the tax preparation.
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jeancar
Level 2
04-09-2022
10:51 AM
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Yes, this did work. There was some old basis complicating the calculation.
