RMD taken and then reeposited due to CARES act

Forum|Forum|5 years ago
February 6, 2021
2 replies
35 views

I took my RMD early in 2020 and then redeposited it when the CARES act said I could do so. The original RMD withheld fed & state taxes. I get a 1099-R for the original RMD, but nothing to support the redeposit.

What should I do to indicate the RMD was returned,and still get credit for the taxes withheld? I can't find a CARES act special cases screen. If I code in a contribution equal to the distribution to the traditional IRA, the software posts a $7000 taxable amount for contribution to a Roth.

ProSeries Professional

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Best answer by George4Tacks

Unless the client sent back the total distribution amount, including withholding, then the withholding is taxable distribution. I would show what they gave back as an indirect rollover. That would likely leave a Taxable income = withholding.

Someday (due by May 31) the client will get a 5498 that will show what was repaid. Often they send it as a substitute https://www.irs.gov/pub/irs-prior/f5498--2020.pdf I already have one for one of my IRAs.

George4TacksAnswer

Level 15

Unless the client sent back the total distribution amount, including withholding, then the withholding is taxable distribution. I would show what they gave back as an indirect rollover. That would likely leave a Taxable income = withholding.

Someday (due by May 31) the client will get a 5498 that will show what was repaid. Often they send it as a substitute https://www.irs.gov/pub/irs-prior/f5498--2020.pdf I already have one for one of my IRAs.

Answers are easy. Questions are hard!

qbteachmt

Level 15

@hbgbrian

You should follow the instructions here, for your client's tax return:

https://proconnect.intuit.com/community/retirement-tax-credits-and-deductions/help/generating-form-8915-e-in-proseries/00/121289

But you used "I" a lot.

You’ve come to a Peer User community for Intuit Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte , and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

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