NYS tax form question - rollover rmd

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legio XX
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NYS tax form question - rollover rmd

Post by legio XX »

I undid my 2020 RMD. Since the taxes withheld couldn't be undone, I have a refund due from the state for the first time in a loooong while. The question is what forms/copies to send.

As per the instructions, I copied the figure from IRS 1040 and entered -0- as "taxable IRA distributions." The undo was characterized as a rollover. There is no total/taxable breakdown on the state form, and the instructions say nothing about "rollover." Did I miss something?
I also need to fill out another form that copies the withholding info from my 1099s. But, of course, the original 1099s say nothing about the rollover. So, would stating that no RMD was taken while taking credit for taxes paid on an RMD distribution upset the state's software?

What would have the best chance of avoiding a problem? 1) Just file it and trust them to work it out - there are plenty of people in the same situation, right? 2) Send a letter of explanation with the return? (Does someone/thing actually read those?) Send some other documentation, such as ... ? 3) If I send the sheets that show a deposit to the account(s), it will look like an IRA contribution, which is a different set of calculations, and I wasn't eligible to make one in 2020. And, one of the undone RMDs came from an inherited IRA, so no contribution no way.

Thanks for any suggestions.

(Yes, I file on paper. One of these days I will sit down with my buddy "Someone" and walk through the online process. But not today.)
FactualFran
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Re: NYS tax form question - rollover rmd

Post by FactualFran »

As far as I can tell, you have not missed anything. There nothing in the instructions about "rollover" (as you noted) or "required minimum distribution".

The taxable amount of IRA distributions on the New York income tax return is simply of copy of what is on the Federal income tax return. Any NY income tax withholding reported on an IRS Form 1099-R should be reported on a form included with a NY income tax return.

There should be no need to send a letter of explanation. You should have an account statement from the IRA custodian that indicates that an amount added to the account was a rollover, rather than a contribution to the account. In the unlikely case that the NY income tax department wants more details, they will ask.
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legio XX
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Re: NYS tax form question - rollover rmd

Post by legio XX »

FactualFran wrote: Mon Apr 19, 2021 2:15 pm As far as I can tell, you have not missed anything. ...


Thank you for the clear summation. Very helpful. (Whew!)
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