qbteachmt
Level 15

"Does the taxes paid come back?"

The first issue is if you "rolled" this into your own IRA, or opened and titled one as Inherited.

The next issue is, you took a distribution, and when you "rolled" it, did that meet the Rollover Eligibility rules, which also were more lenient due to the CARES Act.

Then, when you "rolled" it, did you include the amount to make it whole? Your currently available funds would have been needed to supplement the amount, because the distribution was a Gross amount, and having withholding meant you got a Net. To Rollover in Full requires that you provided the missing amount.

If you did not rollover in full, then you have a Partial Rollover and a Partial Distribution. The amount that was withheld for taxes is no different than if you kept it, and that is the Distribution amount.

Lastly, the taxes paid in simply count towards all tax payments made by you through any combination of withholding and estimates. It will only "come back" if your entire tax year results in a refund condition.

 

ProSeries has a Help article for you:

https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853

 

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