Retirement tax questions

To clarify, you you completed Form 5329 and when you preview your Form 1040 with the steps above it shows on Schedule 2 line 21 an entry but it isn't carried over to Form 1040 line 23? 

If this is the case It would be helpful to have a TurboTax ".tax2023" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Online: 

1. From the left menu select Tax Tools. 
2. Then select Tools below Tax Tools. 
3. A window will pop up which says Tools Center.  
4. On this screen, select Share my file with Agent. 
5. You will see a message explaining what the diagnostic copy is. Click okay through this screen and then you will get a Token number. 
6. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

If you don't see anything on line 21 of Schedule 2 but want to report that you did not take your RMD for 2023 then the instructions depend on if you had other Form 1099-Rs.

If entered a Form 1099-R then please review your answers when you go through the retirement section interview:

1. Click on "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. On the "Your 1099-R Entries" screen click "Continue"
5. Continue until "Tell us more about the retirement plan distribution" screen and select "I did not receive all the RMD for 2023" and click "Continue"
6. On the "Required Minimum Distribution" screen enter the RMD amount and actual amount received
7. Enter information on the "Let's see if we can reduce your tax bill" if you want to apply for a waiver.

If you do not have any Form 1099-R then unfortunately, this can only be done using the "forms" mode which is only available with the TurboTax Desktop software if you do not have a Form 1099-R to file:

1. Enter the forms mode and click on "Open Form" and type "5329".
2. Scroll down to Part IX line 52 and enter the RMD amount that should have been taken. On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).
3. If you want to waive the penalty then in the box right under line 53 "Waiver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). 
4. Click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waiver.

If using the TurboTax Online version and have no 2023 Form 1099-R to file, you will have to prepare the 5329 manually. Please be aware that you can only use this method if you are requesting a waiver of the penalty and there is no taxable amount on Form 5329 form line 55 that must be transferred to Schedule 2 line 8.

Download Form 5329 from the IRS website and fill it out the same as above. Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.

The 2023 Form 5329 must be attached to your printed and mailed 2023 tax return and cannot be e-filed.