RMD income for 2019

[jimP2]

I have been told the RMD for 2019 is not taxable.  If that is true, how do we handle the income amount of RMD in Turbo Tax this filing season?

[MaryK4]

The RMD is the REQUIRED MINIMUM DISTRIBUTION.  It is still taxable- but in 2019 the requirement to start the RMD.  The law raises to 72 from 70½ the age at which individuals must begin taking RMDs from their retirement accounts. Important: The new law only applies to people who turn 70½ after December 31, 2019. 

If you turned 70 1/2 before January 1, 2020 your RMD requirement did not change so you must indicate it in TurboTax to avoid the excise tax for not taking it.

[Chigung2]

Dear MaryK1101,

I checked TurboTax 2019, and it treated the RMD amount as non-taxable, just as the original author of the question said.  For example, I had $33K taxable amount of traditional IRA roll-over to Roth IRA in 2019, but TurboTax insisted on removing the $13K RMD as non-taxable, and only leaving $20K in as taxable.  I can't change its calculation; and I'd be happy to pay less tax; but will I get into trouble with IRS later,  if it's a software bug in TurboTax?

Thanks,

Chigung2

[fanfare]

you can't rollover an RMD into another IRA. That's why it was subtracted.

Meanwhile you did pay tax on that RMD elsewhere if you entered everything correctly

You're supposed to do your RMD before you convert anything to ROTH.

[portia81]

Do I treat the RMD as income? Where do I enter it in the 1040?  Also where do I enter the Federal tax withheld?  The state tax withheld?  Thank you

[VolvoGirl]

You should have a 1099R for that.  If not ask the plan for another copy.

The easiest way to get to the 1099-R entry screen is to simply search for 1099-R (upper- or lower-case, with or without the dash) in your TurboTax program and then click the "Jump to" link in the search results.

Enter a 1099R under

Federal Taxes on the left side

Wages & Income at the top

Then scroll way down to Retirement Plans and Social Security,

Then IRA, 401(k), Pension Plans (1099R) - click Start or Revisit

If you are filing a Joint return be sure to pick which person it is for.

[portia81]

Thank you Volvo Girl.

     I have entered a 1099-R for the RMD.  But I don't see a work sheet on which to enter the RMD amount as income.  Also  I don't see a place on a work sheet to list the Federal tax withheld (ditto state tax). 

     So I put the tax withholdings on a work sheet for entering taxes withheld that were not listed elsewhere.  Turbo Tax has told me there are no errors in my Federal and has had me do my state tax return.  I am just really puzzled as to why Turbo Tax doesn't have a section on the RMD--explaining it, having a work sheet for it, etc.

Portia81

[VolvoGirl]

You only fill out the 1099R.  Didn't you enter the federal withholding in box 4?  Do not enter the withholding again separately or it will be doubled.  The boxes on the screen match the boxes on the 1099R.  Then you have to continue on through several pages of questions to finish the 1099R section.

The income will be on 1040 lines 4a & 4b for IRAs and

4c & 4d for Pension and 401K.

Then better check the withholding your 1040 line 17 that it is not added twice!

Before filing,  You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

[portia81]

By looking over my work sheets and the actual forms (1040), I have found the answers to my Q's.  Of course, Volvo Girl help me first.  Portia81 

[portia81]

I just now saw your most recent filing, Volvo Girl.  Thank you again.  I will make sure that I have not entered the tax withholding twice.  Portia81

[portia81]

Thank you Volvo Girl!

   You were right.  I had listed the tax withholding twice for the RMD on both Fed. & State returns.  I corrected this.  I filed them both around 5/28/2020. The Feds. accepted my return right away.  I have my refund already--direct deposit.

   But the state, DC, has not accepted it to date.  Today is June 10, 2020. 

   My thought is to file an amended return with DC.  DC wants people to list their driver's license or ID card information on the return.  This is to reduce the filing of fraudulent tax returns.  I have a driver's license, but it expired last year, 2019.  (I no longer drive and do not have a car.)  So I said I didn't have a driver's license (I thought if the license was expired, I no longer had one.)  I don't yet have an ID card (deadline is 10/2021).  So no ID.  Now I'm thinking to file an amended return with my driver's license information included--there is a space for the expiration date. (I have included my driver's license on all my previous DC returns.)  What do you think?

Portia81

[VolvoGirl]

No do not file an amended state return if they didn't get your first one.  Was your state return Accepted?  Double check your efile status here

https://turbotax.intuit.com/tax-tools/efile-status-lookup  

When you efile you get back 2 emails.  The first email only confirms the transmission.  The second email says if the IRS (or state) Accepted or Rejected your efile.

When you log into your account you should also see the status and if it was Accepted or Rejected, Started, Printed, Ready to Mail, etc.  What does it say for state?

If it didn't go through you can try to efile it again or you will have to print and mail it.  Did you efile federal?  Was it Accepted?    How to file state after federal

https://ttlc.intuit.com/community/e-file/help/how-do-i-e-file-my-state-after-i-already-filed-my-fede...