Estimated taxs and 1099-R withholding

[dang7]

TurboTax 2020 estimated tax estimator does not allow entry of withholding data from 1099-R forms.

Will this be corrected?

Otherwise the estimated taxes for 2020 will be way to high

I tried the IRS tax withholding estimator, but it forces you to withhold taxes on retirement  income as it is received rather than by using quarterly estimated payments.  

Is this this a suggestion or new tax law?

[DavidD66]

You do not have to pay tax on retirement income by withholding nor do you have to pay monthly as received.  You can pay the tax quarterly via estimated tax payments if you would like.

[dang7]

Thanks for the information, but I still can't enter the 2020 federal withholding from my 1099-R forms into the TurboTax estimated tax calculation.   The TurboTax estimated tax calculator has a screen entitled "Enter Payments You've Already Made". Under that line is a line that gives Federal Income Tax Withheld which has values of zero for myself and my wife.  The estimated tax calculator could have used the 2019 withholding as an estimate, or should allow you to enter the correct 2020 values, but instead the zero value cannot be changed.  As a result the TurboTax estimated tax values are too high.  I can compute the 2020 estimated tax without using TurboTax, but I would prefer to use TurboTax as I have done in the past

What am I missing?

[ReginaM]

You can change your 2020 information entered into TurboTax to compute your Estimated Tax Payments.  Follow these steps:

1. While in your Tax Home,
2. Select Other Tax Situations,
3. Select Show More next to Other Tax Forms,
4. Select W-4 and Estimated Taxes,
5. Select Start,
6. Follow through the on-screen prompts until you see this screen:

    7.  Select Yes and you can change your anticipated withholdings for 2020.

[Garyo82]

Hi:  I do not see "show more" that you reference in your response.  What am I missing.  I have tax withheld from my retirement payments and I want a more accurate estimated tax payment which would happen to be much lower than what Turbo Tax is calculating at present.  Thanks.

[DoninGA]

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@Garyo82 wrote:

Hi:  I do not see "show more" that you reference in your response.  What am I missing.  I have tax withheld from my retirement payments and I want a more accurate estimated tax payment which would happen to be much lower than what Turbo Tax is calculating at present.  Thanks.

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If you are using the TurboTax desktop editions -

• Click on Federal Taxes
• Click on Other Tax Situations
• Scroll down to Other Tax Forms
• On Form W-4 and estimated taxes, click the start or update button

If you are using the TurboTax online web-based editions -

Click on Tax Tools on the left side of the online program screen

Click on Tools

Click on Topic Search

Enter 1040-es, estimated tax for next year.  Highlight the result and click on GO

[Garyo82]

Thank you for your response.  I managed to stumble around and got it to work.

[SForrestLO]

Your welcome.

[tschettini]

I am having a similar problem as earlier users. I cannot find where to properly enter planned withholding from my 2022 RMD that will be reported next year on 1099-R.

I went thru the "Other Tax Situations" screens, including the "W-4 and Estimated Taxes" section listed under "Other Tax Forms". The "Learn More" help boxes mentions "other payments" but I found no screen that addressed RMD withholding.

As a result TurboTax is over estimating what I need to pay in quarterly installments.

PLEASE NOTE: A recent newspaper tax advice article stated that the IRS assumes withholding from an RMD is spread over the year, regardless of when you take the RMD. So, taxpayers can leave the RMD amount invested all year, and ask the IRA administrator to withhold some or all of the RMD for taxes when it is paid later in the year; and the IRS will credit that withheld amount as being spread over all 12 months.

Please show me specifically where I can enter my planned RMD withholding (for December 2022) or add this important feature to the next update. I like TurboTax and if not already there, this feature would be a big help to customers with RMDs.

If not clear, please have an agent contact me to discuss further. 

[DoninGA]

@tschettini Sorry, I do not understand your issue.  Are you saying you are going to tell your plan administrator who will distribute the 2022 RMD to Not withhold any federal income taxes from the distribution?  And you want to make estimated taxes for the distribution yourself?

All you need to do is tell the plan administrator what percentage of taxes you want withheld from the distribution. eg 5%, 10%, 15%, etc.  The taxes withheld on a Form 1099-R are treated the same way as taxes withheld from wages on a W-2, they are deemed to have been paid equally for all 12 months of the tax year.

[tschettini]

Hi,

Thanks for the quick reply. To clarify, I plan the opposite ... to ask my plan administrator TO withhold some or all of my RMD. So I would use withholding from my RMD to replace some of the estimated tax payments I would otherwise make quarterly.

My question is where in TurboTax can I enter the amount I plan to withhold from my RMD? I see a screen that clearly asks for WAGE withholding, nothing for 1099-R withholding; seems like that should have its own screen and question in the interview.

[JulieS]

You can enter any additional federal withholding on the screen titled, Enter Payments You Expect to Make. 

[tschettini]

I have Desktop. I do not see a similar screen. I found a workaround by going thru the form.

[prowe4]

This screen no longer seems to exist for 2024 Tax Estimates. For someone who receives monthly payments from Social Security and a Pension, I cannot figure out where to add those expected withholdings.

The IRS estimator allows me to do this pretty easily.

Any ideas? Thanks!

[ThomasM125]

You can add the pension and social security tax withheld to the wages withholding, it doesn't matter where you enter that:

@prowe4