Estimated Tax

Forum|Forum|6 years ago
July 28, 2020
8 replies
51 views

Took my Minimum Required Distribution in April. Paid a large amount of US and state taxes on the withdrawal. Now discovered I can rollover the funds back into IRA, which I have done. Do I need to continue paying scheduled Estimated Taxes?

Best answer by VolvoGirl

When you put it back into the IRA did you replace the withholding with your own extra money? You still will get credit for the tax withholding taken out. Then if you are paying the extra 1040ES quarterly estimated payments you can probably reduce them or not pay them. The 1040ES are optional to pay and the IRS won't be expecting them.

macuser_22

Alumni - Champ

You had tax withheld or are paying additional estimated tax?

Tax already withheld will be reported on your 1099-R box 4 and will be applied to other tax withholding to offset any 2020 tax or be refunded to you.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

JMichael2Author

Level 2

Had tax withheld with the MRD withdrawal.

VolvoGirl

Level 15

Right. It will be on the 1099R you get at the end of the year. You will get credit for it on your return which might give you a Refund. Now when you rolled the RMD back into the IRA did you send back the net amount you got or the full amount including the tax withholding? If you didn't replace the withholding then the tax withholding will be a distribution and taxable by itself.