Error with reporting RMD. TT calculates a $7000 tax penalty for timing. I can't correct it.

[sfearey]

For my 2024 federal return I download the information for my RMD from my institution.  I withdrew all that I was supposed to long before the end of 2024, then gave most of it to charities.  So about $10K is taxable income.  It handles that fine, but then it makes errors on form 5329 and calculates a $7000+ tax penalty.  

It should not be using form 5329 (additional taxes on qualified plans) at all.  It seems to be thinking that I failed to take the full withdrawal in 2024.  But there is no way to debug it. 

I can't figure out how or why it is doing the calculation.  I tried deleting the data and downloading it again, but it didn't help.  I tried giving it a date for when I made the withdrawal, but it made no difference. 

Is there any way to manually enter data in a 5329 form to correct the error?

Thanks.  

[DanaB27]

Please follow these steps:

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R” and enter your 1099-R
3. On the "Required Minimum Distribution" screen enter RMD for this account 
4. On the "How much of This Distribution Applied to your December 31, 2024 RMD" select "The entire distribution applied…"  / or select "Some of this distribution…" and enter the RMD amount (include the RMD amount that went to charity)
5. Answer the "Transfer to Charity Screen"
6. On the "Your 1099-R Entries" screen click "Continue"
7. On the "Did You Miss a Required Distribution From Any Retirement Accounts?" screen select "None of these plans failed to withdraw the RMD" if you met all of your RMD for 2024. 

[sfearey]

Thank you for your response to my question.  I found the problem.  It turned out that when I entered my government pension, Turbotax assumed it was a second RMD, in addition to my IRA RMD.  That triggered form 5329 which calculated a whopping penalty for some reason or another.  I figured this out after hours of experiments with my IRA RMD reporting.  Finally I went to the entry for my pension and found the mistake.  Once I said it was not an RMD, it deleted form 5329.  Then the calculations for my RMD were correct.  Turbotax makes it increasingly diffecult to find and debug errors.