Estimated Tax

[JMichael2]

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?

[macuser_22]

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.

[VolvoGirl · Accepted solution]

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.  

[JMichael2]

Had tax withheld with the MRD withdrawal.

[VolvoGirl]

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.

[JMichael2]

Rolled over the entire RMD including taxes from a personal account. 

[macuser_22]

As answered above, the tax withheld will be in box 4 on the 2020 1099-R that you will receive.   When entering into TurboTax say that the money was "moved" to another (or same) account and that the box 1 was the amount rolled over.  The box 4 tax will be applied to all other withholding to reduce the total tax owed or increase your refund.

[VolvoGirl]

Do you still have questions? You just keep saying you had taxes withheld.  You will get that back on your next year's tax return.  What don't you understand?  Please write a longer question.

[JMichael2]

My emailed reply has not been posted yet.

>>This answers my question. Thanks very much for all the replies!!

On Jul 28, 2020, at 14:53, Turbo Community wrote:

 The 1040ES are optional to pay and the IRS won't be expecting them.<<