I need to complete a form 5329, the add it the additional tax to line 8 of Schedule 2. Can't see where to input that information
Click on Federal on the left side of the online program screen
Click on Other Tax Situations
Under Additional Tax Payments
On Extra Tax on Early Retirement Withdrawals, click on the start button
I tried that and it tells me I don't have any. This is a mandatory IRA withdrawal that I didn't take. Not an early withdrawal. It is a penalty for not taking the mandatory distribution.
You can process the form 5329 in the TurboTax desktop software. You can use the Tax Tools option on your left menu bar while you are working on your return to then bring up Tools, which will have on option to Save your return to your computer so you don't need to start your online return over in the desktop version of TurboTax.
In the desktop TurboTax product, use the Forms menu option to bring up Form 5329. Scroll down to Part IX, line 52 and enter your required minimum distribution amount. Enter the amount of any RMD you took in line 53. Use the Waiver of Tax Smart Worksheet below line 53 if you withdrew the money late and want to enter an amount you want to exclude from tax, and click on the Explain box to enter an explanation of why you missed making the distribution.