Hi,
I am doing my own tax and a topic came up that I was hoping you can clarify.
For 2024, I took an RMD with the option to have federal income tax withheld.
Am I being tax double if I chose to have the federal tax withheld?
For example, My RMD for 2024 was $80,000. I chose 10% federal tax withheld which is $8,000. So $72,000 goes to me and the $8,000 to IRS. I have satisfied my RMD with the gross distribution $80,000. When I do entry for the 1099-R, I entered the total gross distribution of the $80,000 as shown in box 1, instead of the $72,000 which is the amount deducted after 10% tax withheld. If I report the full RMD amount ( $80,000) would that mean I am taxed twice (once when $8000 was deducte for fed tax and now when I enter the gross distribution of $80,000 which is counted as my taxable income) .
Pleaseexplain if I am getting my thinking wrong.
Appreciate you advise
