How does 2019 Turbo Tax's calculation for Estimated Quarterly Tax handle Required Minimum Distributions (RMD's)? As I understand it, RMD's are not required for 2020. Not making the distribution significantly reduces my income for 2020.
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I have the same question -- Turbotax calculated an estimated tax that I should pay in 2020, but I will not be taking the RMD that I took in 2019, so my 2020 income will be much lower and I hope, therefore, that the estimated tax will be correspondingly smaller. How can I recalculate the amount of estimated tax that I should pay in 2020?
Follow these steps to work through the calculations to re-do the 1040-ES, estimated tax payment vouchers so that they better match your personal situation and needs.
Working on redoing est. tax for 2020 since no need to take RMD this year. We are both retired. In the W-4 Est. tax interview, I came to adjustments to income. Do I enter the RMD amt. from last year (2019) as a negative number to remove it from income for 2020? Also, then need to put somewhere that the tax paid from this distribution will not be paid in 2020. These are both considerable sums. Is there a phone number for support to speak with someone?
If turbotax estimates your estimated payments based on a RMD in 2019, you can reduce those payments if you are not going to take the RMD.
Figure 22% of the RMD divided by four, and subtract that amount from each estimated payment.
If you are in the 25% bracket, use 25% instead.
don't forget to factor in the custodians withholding amount, if any.
Since there is only one more estimated payment due 1/15/2021 you can simply not make the last payment if you believe you have overpaid for 2020.
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