RMD taken correctly, but penalty assessed

[TerriLa]

But my plan is not a qualified plan.  And by entering the amount of my distribution as the RMD, it takes me to another screen asking if I took out the remaining amount, which just so happens to be the total amount of my gross distribution, before the withdrawal window closes.  There is no remaining amount that needed to be withdrawn.  My gross distribution is the full RMD amount.  It then proceeds to charge me a 10% penalty on the amount they said I did not withdraw in time.  Then TT flags the whole thing as an error.  The only way for it to not charge me a penalty on my gross distribution is to put 0 for the RMD.  Why will you not listen to any of us?  There is a major problem with your TT software.  I am giving you one more week to fix the error in your software before I stop using TT for my tax software.  I have been a loyal customer for years, but if I can’t trust your program, then I am done with you.

[taxfun01]

I am in the exact same situation.  Do we just continue to wait for a fix?  I was able to remove the D from the code box and answer a few more questions.  TT accepted it that way and ready to submit.  I haven’t yet because it’s not correct.  Thoughts? 

[TBGrant]

Same experience here. Never had any issue re. RMD in previous RMD years, now hammered with penalties for NO APPARENT REASON!!! I have used the AARP calculator and the amounts come out to within 1 cent of the actual RMD amount. What on earth is going on here? It would be nice necessary to hear from Intuit on this issue. VERY DISTRESSING!!!

[TBGrant]

This issue is going from bad to worse. Yesterday I was getting a penalty of ~$2300. Today I have deleted 1099-R's, cleared cache, updated software, started a new return and re-entered 1099-R data as suggested by DanaB27 and I am now told I have a $9200 penalty!! All this after calculating RMD's using the ARPA calculator and finding that my broker's numbers are accurate to within a penny!!!

This is not going well and I am looking for a an alternative to TurboTax.

Please help me fix this...

[fanfare]

From the original post:

"The only way to get TT to calculate the correct tax is to say that my required RMD was $0,"

IRS doesn't care what you tell TurboTax. They are looking at your Form 1040.

@arusso03   I think this is the simplest solution proposed and the first time I've seen it.

[TerriLa]

Oh no, TBGrant!  That is not good.  TT seems to have brushed this problem aside, either basically telling us it is user error and we don't know what we are doing when entering our 1099s and RMDs, or telling us to lie on our tax return and take the penalty that TT is assessing because it says we failed to take our full RMD.  So many people are having this problem.  I used to feel I could trust TT.  Not anymore.  I hate to have to pay more for another tax software program, but looks like it is coming to that.  

[TBGrant]

TerriLa - we appear to be in the same boat, i.e. no response I can see from TT. This issue has brought me to the edge. Fortunately, I got a cogent tip from @arusso03 that has me through the storm. I'm hoping to finish my return today and will check it very carefully before filing. I can find no other means of taking TT to task on this, other than promising to be a former customer with a very bad attitude. Thanks for your input.

[TBGrant]

Thanks much for the tip. It looks like this workaround will get me through this year's return, but I'm quite grumpy about TT not responding to the issue. Obviously a coding error on their end. Thinking evil thoughts about why this would happen and what might result...

[arusso03]

Good luck @TBGrant.  It's just upsetting that you have to literally input incorrect RMD information in order for the tax liability to be calculated correctly.  Hopefully, the backup page showing the (incorrect) RMD amount is not actually transmitted to IRS with your return (I don't believe it is).  It's terribly disappointing that no one has contacted you to address this software issue. 

[SPQ]

@arusso03  The tip about entering 0 for the RMD was helpful.  It's true that the IRS only cares about the accuracy of the return, not the answers to TT questions.  We shouldn't have to be going through all this, but it's a way to make some progress.

Thank you.

[fanfare]

Only worksheets required by IRS are attached to your e-File.

@arusso03 

P.S. I commend your solution which is obvious in hindsight, especially if TurboTax accepts it.

[TBGrant]

How on earth does someone with an obvious software glitch such as this get the attention/response of TT? This is NOT a good sign for the future...

[arusso03]

It's impossible to reach a human being - and that is definitely not a good thing.

I experienced a software issue about 5 years ago with TT, but they addressed/corrected it quickly back then.

I agree - this is not a good sign of things to come.  They will lose customers to the competition. 

[TBGrant]

...meantime there's this!!!

[TerriLa]

@arusso03 @TBGrant @fanfare 

So, I entered all my tax information into another tax software program to compare.  TaxAct doesn't make you pay until you file.  By having to incorrectly enter $0 for my RMD in TT, the two programs came up with the same refund.  So, hopefully the IRS will realize I met my RMD, even though I had to enter $0, and that none of the problems with the TT calculations will be sent out.  Fingers crossed, I am going to go ahead and file my TT form.

It is just so frustrating that TT is not addressing this issue in the software so we can report it correctly.