Is Federal tax with held from a RDD also considered an Estimated Tax Payment?

Forum|Forum|7 years ago
June 3, 2019
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Best answer by rjs

No, tax withheld is withholding, not an estimated tax payment.

I assume you mean RMD, not RDD. You should have received a Form 1099-R for your RMD withdrawal from an IRA or other retirement account. The federal tax withheld is in box 4 of the 1099-R. Just enter it in TurboTax as it appears on the 1099-R. TurboTax will handle it correctly. It will be included in the total tax withheld on Form 1040 line 16.

rjs

Answer

Level 15

No, tax withheld is withholding, not an estimated tax payment.

fetting9501

Level 2

OK, I entered the amount of FIT withheld but there is no place to enter the date. I took my RMD in January but TurboTax computed an underpayment penalty. How do I override this.

rjs

Level 15

@fetting9501 The date doesn't matter for withholding. All withholding is treated as having been withheld evenly over the year. That's why there's no provision for entering a date. Estimated tax payments are treated differently, and you can enter a date for estimated tax payments.

If the underpayment penalty is caused by a large IRA distribution in January, and you did not make any estimated tax payments, there is probably no way to eliminate the penalty.