TurboTax appears to be doubling my Required Minimum Distribution. Fix?

[DanaB27]

Please follow these steps to enter the RMD:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R” and enter your 1099-R
4. Continue until "How much of the $XXXXX was a RMD?" screen, select "The entire distribution was an RMD" (or select "Only part of this distribution was a RMD" and enter the amount of RMD) and click "Continue".
5. On the "Let's get more information about your Required Minimum Distribution (RMD)" screen enter the amount of the RMD from this distribution again.

For example, if you took $10,000 from one account to satisfy all of your RMD from different accounts then you select "The entire distribution was an RMD" and then on the next screen enter $10,000. Ignore the fact that the actual RMD for that specific account was less.  

[crdwozan]

Thank you for your prompt response. I wish it would have fixed the problem, but it didn't. I am more convinced that a software fix from Intuit is required. TurboTax, for me, usually simplifies filing matters but not in this case. I believe the questions asked that lead the non-tax expert to enter RMD data and the behind-the-scenes mathematical computation need work. When I click the radio button for "No it is not correct" I get a TurboTax response that TurboTax is working on a fix. I hope that is the case and not just a canned response.

Again, thank you for your past and future efforts in helping me over this hurdle.

Richard

[crdwozan]

On Friday I received a request from TurboTax Community site to select "best answer". I received only one reply which did not resolve my problem (see my "Wednesday" reply). Sorry but I cannot accommodate the request, and I am still hopeful that a solution - be it through the community or TurboTax programmers, will come REAL SOON. 

Thanks for asking. 

[gdeb]

Go into the actual tax form by clicking forms in the upper right-hand corner of the screen.  Then go to form 1099R Summary, Line 44 and enter in the correct RMD amount.  This amount should now appear when you go back into Turbo Tax and are shown what your entered RMD amount is.  I spent a lot of time trying to make the change through Turbo tax between my IRA and an inherited IRA.  I hadn't withdrawn enough to cover double the amount of the RMD and so the program was ready to create new forms for the penalty I would have had to pay!  What a pain.

[williamsonga52]

Same thing happened to me. I had to file an amended return. Funny how the amended return worked. 

[tborg]

The same thing happened to me.  I had to go into the form and find the IRA "RMD Excessive Accumulation Worksheet".  Line A asks for the required RMD amount.  (That doubles the RMD).  Line B is the solution.  It asks for the "Amount Distributed in 2025".  You have to enter the RMD amount there as well.

It's looking to see if you took more or less than you were supposed.  I assume there is a penalty if you don't withdraw the entire RMD.

[ralger17]

This solution doesn't work for the 2025 tax return.  I noticed that when I get to the "Do any of these situations apply to you?" screen and click on "I inherited this IRA", it doubles the RMD in the forms.  The only fix I've found is to NOT click on this answer, and in fact, not click on anything.   That fix gets me to the correct taxable amount for the RMD.

This seems like a software fix is required.  If anyone has a better solution, please share!  Thanks.

[RogerD1]

When you are entering your 1099-R do you mean that you are seeing your Federal tax due increase?  After you click "I inherited this IRA", then enter the details on the next few screens, you'll get to the screen "Let's get more information about your Required Minimum Distribution (RMD)".  In the RMD due by Dec. 31, 2025 box, you will enter the RMD for this 1099-R.  After you click continue, you may notice your Federal tax due increase at the top of the screen - this is normal.  On the next screen, if you click "The entire distribution applied to the December 31, 2025 RMD", the Federal tax due will drop back down again.

TurboTax has no means of determining your RMD for you, so it isn't possible that TurboTax is doubling your RMD in the forms.  If you have other details you could share about the issues you are seeing - such as if you are being penalized on Form 5329, etc., that will help us to better help you.  

[ralger17]

To clarify, the only taxable RMD I had for 2025 was $2400, which was for an inherited IRA.  When I went entered the 1099-R into the TurboTax questionnaire and indicated it was an inherited IRA, line 4b of Form 1040 was showing the taxable amount to be $4800 (i.e. it doubled what the amount should have been).  The only way it would properly show $2400 on line 4b is if I went back to the questionnaire and unclicked "I inherited this IRA", which was very strange.  

Regardless, I went back into TurboTax today and clicked on "I inherited this IRA" and line 4b is now correctly showing the $2400 so it all seems to work properly.  Thanks very much for taking the time to help.

[taxdude]

This is indeed a bug in TT Home and Business 2025, and a rather serious one at that. I was able to fix it by going to the Forms view and edit Form 1099-R. Specifically, scroll down to RMD Excess Accumulation Worksheet. On Line A, enter the Required RMD Amount. On Line B, enter the Amount Distributed in 2025. Above that, check the Yes box under the question: "Entire gross applies to December 31, 2025 RMD?" (assuming that is the correct answer for you). That's it -- you're done. Someone at Intuit needs to fix this bug ASAP!