Extra tax on RMD

9 replies
98 views

I have one IRA. I entered my 2025 RMD, the exact amount required and TT added 10% additional tax. Will IRS refund the overpayment or will I have to amend the return to recover TT's error.

xmasbaby0

Level 15

I PAID TAX ON THE RETIREMENT MONEY ALREADY

You had tax withheld from the distributions from the retirement account, just like when an employer withheld tax from your paychecks. When you enter it all into the software, the calculations are done to reconcile the amount of income you received and the amount of tax that was withheld. You might owe more or you might get a refund.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Michael180Author

Level 2

No tax was withheld from the distribution as I pay quarterly estimated tax. My tax on the distribution is included based on my total income.

DianeW777

Alumni - Intuit

My advice is to amend your tax return because the IRS is not likely going to refund the money if it appears as though a penalty should exist. If your return was accepted, allow a little more processing time and then amend just to be safe and know a refund will be coming.

Read the information in the link below before you make any changes so that TurboTax will know the original numbers and the corrected numbers for your amendment.

If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines.

You must first wait until the initial return is completely processed.
You will have to use the same TurboTax account that you used for the original tax return.
Once you begin your amendment, you'll see your original return.
The refund calculator will start new at $0 and only reflect the changes in the refund or tax due
Only make changes to the areas of your return that need to be corrected.
You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment

Amend a tax return for the current tax year

Tax Form Availability (Form 1040-X will not be ready until later this month - use this link to see when it becomes available.)

@Michael180

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