Client takes $$ from IRA for 30 days and then puts same amount back in
He got a 1099 for the distribution. how does he report on his 1040 that he put the monies back in the account. to avoid tax and penalty.
thanks
He got a 1099 for the distribution. how does he report on his 1040 that he put the monies back in the account. to avoid tax and penalty.
thanks
Permalink Submitted by Alan - IRA critic on Tue, 2015-01-27 15:43
Assuming he had not previously exhausted his one allowed rollover from this IRA, he simply reports the distribution on line 15a of Form 1040, shows nothing on 15b and enters “rollover” next to 15b. Since 15b is the taxable amount and will be 0, no taxes or penalty will be due.