1099R with a returned distribution from IRA

[jeancar]

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?

[qbteachmt]

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.

[jeancar · Accepted solution]

Yes, this did work.  There was some old basis complicating the calculation.