RMD taken correctly, but penalty assessed

[Mad cuban]

This is what is happening to me.  By mistake  I had the amount of RMD taken out twice. But, it’s telling me I didn’t pay it completely and it’s penalizing me over $800!  What is wrong with your calculations?  My 1099specifically says it was paid in full, however you say I did not.  I’m not willing to pay your exorbitant prices in order to talk to someone that probably knows less than I do about taxes!  Also I’m over the amount where I am exempted from taxes and you are charging me a 29% rate, what’s up with that! I am 77 years old in retirement and have been filing with Turbo Tax for many years but something is very wrong this year.

[robinson1025]

SO FRUSTRATING!!!

[robinson1025]

DANA,   I followed your instructions and sent my file for diagnosis.    I have a token number    I tried sending that number to you via email, but your email address is incomplete. Would you please give me your full email address so I can forward the token number.  DanaB27 is an incomplete email.  

[VolvoGirl]

You just post the token number here in the forum.   

[robinson1025]

My token number is 1173147360-98600050.   I deleted the form and entered manually.    I used the codes provided on this thread.    I cleared the catche and I have turned the program off…..all of this MULTIPLE TIMES.

[VolvoGirl]

The filter ate part of your token #.  You can post a screenshot of it.

[mtl9810]

Having similar issue as others.  I am doing taxes for my deceased father.  He has two 1099-R's from accounts that he took the required distributions from until his death.  I have entered the amounts as they are on the form but I am getting the Penalty notice upon review.  Can you help?  My token # is 1299099.

[Mad cuban]

And if you ask a question the answer they send has nothing to do for what you are asking?  Capital Gains losses carry over of $3,000 not accurate and they send me an answer for Investors and rental income.  Which has nothing to do with what I need to know!

[Mad cuban]

Actually I found on my 1099 for the distribution of RMD is not Turbo Taxes fault in my return.  Chase Bank did not check the box for “RMD satisfied” even though I had the whole amount taken out of my account twice . Supposedly Chase is sending me a new 1099, but I had to figure it out myself. And while  I’m checking the rest of the return I realized  I was not given the $3,000 carry over CapitalGains loss..  They only took out $800.+.  So I’m back to having to get an answer from AI which the answers don’t make any sense. Hasn’t Turbo Tax realized all the mistakes been made by Artificial Intelligence on most of the people using their website?

[mtl9810]

@DanaB27  please review my post (did not tag you in it so I'm posting again - sorry.)

I am doing taxes for my deceased father.  He has two 1099-R's from accounts that he took the required distributions from until his death.  I have entered the amounts as they are on the 1099-R form but I am getting the Penalty notice (below) upon review.  Can you help?  My token # is 1299099.

We calculate a penalty of $3,616 based on the amount not distributed in 2024. However, if you can show the IRS that you missed the RMD due to a reasonable error, they may waive some or all of the additional taxes.

Thank you for any assistance - very much appreciated.

[DanaB27]

@mtl9810 I reviewed your return. For the first 1099-R you entered you entered a RMD amount but didn't make any selection on the next RMD question. To clarify, what kind of account was this? If this was a from a non-qualified plan then please delete and reenter this Form 1099-R. If it was from a qualified plan then please review the two RMD questions for this 1099-R.

@robinson1025   I reviewed your file but I do not see an Form 1099-R entered. Form 5329 isn't include on your return. Can you please add your Form 1099-R, answer the follow-up questions, and then send a new token. So I can review why you are seeing a penalty.

[skelly11]

I am a TurboTax Tax Expert. I just had a client with this same issue. 

The IRS recently put out an update and something is not flowing with code D in box 7. If you have anything else in box 7 like a 7 omit the code D. Also make sure all 1099Rs are listed as "qualified" in the follow up questions. 

Only put the amount of RMD for that 1099R in the RMD entry box. A

At the end make sure you choose "None of the accounts failed to take the RMD" - its the bottom option.

[robinson1025]

Thank you I am now OKAY.

[jfschultz]

having same / similar issue - rather frustrated trying to resolve -  @DanaB if you have suggestion / solution would be greatly appreciated.  "diagnostic" file has been "sent to agent"  token # 1302280

I have 2 inherited IRAs (one traditional, one Roth).  Had no issues with RMDs/penalties last year.  I keep getting assessed penalty (and sometimes the penalty amount changes on repeat attempts). 
Have tried the prevous forum suggested solutions including:
deleted prev 1099-R entries

cleared cache and cookies

reloaded 1099-Rs (tried both import from financial institution and upload .pdf of 1099-Rs)

entered the required RMD amount (tried both the correct required RMD amount and zero for required RMD)

checked 'entire' distribution was an RMD

checked 'None.." for missed Required Distribution

----additional

Looking at the Return Forms, Form 5329 Part IX looks incorrect.

[DanaB27]

I reviewed your return. You entered a RMD amount required for the inherited Roth IRA larger than what is shown as distributed on Form 1099-R. 

To clarify, did you not take your full RMD for the inherited Roth IRA? If not then you need to take it as soon as possible. If you take it soon you can say "Yes I took the entire remaining amount during the correction window". Also, you can request a waiver of the penalty if you have reasonable cause. Please see Relief for Reasonable Cause for additional information.

@jfschultz