I went to bed a couple of nights ago and had a $172 Federal Tax owed showing on my system. Next morning when I signed on it was over $2000. I printed the 1040-SR and found Form 5329. In the years I've been using Turbotax I've never had a Form 5329 before. It apparently is used, at least in this case, when someone's IRA distributions are lower than their Required Minimum Distribution (RMD). Also, this form is showing an incorrect distribution amount in Line 53b of $13,933 when it is actually $23,755, ironically, the amount shown on the 1040-SR Line 4b. OK, now onto the software itself. When I'm now reviewing these IRA income distributions online, I'm getting screwy pages. After inputting the 1099-R, one page will say correctly "How much of the $4,661.54 was an RMD?" and I am asked to input the RMD which is $3515. All OK. Next page says
"Let's get more information about your Required Minimum Distribution (RMD).
From what you shared earlier, you received $3,515.21. If your total RMD for 2024 was higher than what you took out, there might be additional taxes to consider.
Could you tell us what the required minimum distribution for your account was in 2024?" Already, this is wrong. I received $4661, not $3515. But I dutifully comply and once more fill in the box with $3515. Next page says "Just a few more details about your RMD
We still need some required info.
It looks like the difference between your required minimum distribution and what you took out for this account is $3,515. This amount could be taxed, but the rate is lower if your required minimum distribution and what you withdrew the remaining $3,515 during the correction window.
Did you take out the remaining $3,515 during the correction window?
-Yes, I took out the entire remaining amount during the correction window
-No, I did not"
OK, now I'm totally confused. There is no correction window because this return has never been filed. Also, no correction is in order as I took out $4661. Can you see that the software is doing something weird. I've used virtually the same numbers in Turbotax for years with no problems. Something's wrong with the online software I'm using. I can't continue until this is resolved.
