I need help. While doing income tax return for 2015, I discovered that an RMD for tax year 2015 had not been withdrawn for my IRA investment.
Subsequently this made me subject to a penalty of 50%. An explanation was given to the IRS for requesting a waiver; the IRS agreed and waived the penalty.
After satisfying the RMD for 2015, I entered the amount of that RMD into my 2015 tax return (in line 21-other income: “RMD amount reported late with waiver fast forward to today 2017. I am now doing the tax return for 2016. I received a 1099-R for this RMD investment – this form listed the total amount of RMD 2015 and RMD 2016! I certainly don’t want to pay taxes twice on the RMD 2015.
If you took the missed 2015 RMD in 2016 then it was a 2016 distribution that must be reported and taxed in 2016, not 2015. Both distributions taken in 2016 must be reported on your 2016 tax return.
Only the 5329 waiver should have been filed for 2015. If you reported the RMD taken in 2016 on your 2015 tax return without a 1099-R then you need to amend 2015 and remove it, which will probably result in a 2015 refund to cover the tax on for 2016 when the distribution was actually taken.
A IRA distribution can only be reported in the tax year actually taken and then only on line 15 on the 1040 form, never on line 21.
If you took the missed 2015 RMD in 2016 then it was a 2016 distribution that must be reported and taxed in 2016, not 2015. Both distributions taken in 2016 must be reported on your 2016 tax return.
Only the 5329 waiver should have been filed for 2015. If you reported the RMD taken in 2016 on your 2015 tax return without a 1099-R then you need to amend 2015 and remove it, which will probably result in a 2015 refund to cover the tax on for 2016 when the distribution was actually taken.
A IRA distribution can only be reported in the tax year actually taken and then only on line 15 on the 1040 form, never on line 21.