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Why is TT adding an "additional tax on IRAs" when I took the RMD? TT is adding a 25% penalty even when I took the entire RMD. When I put RMD at $0, the penalty goes away.

Note - this is the only RMD I have.
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1 Reply
DawnC
Expert Alumni

Why is TT adding an "additional tax on IRAs" when I took the RMD? TT is adding a 25% penalty even when I took the entire RMD. When I put RMD at $0, the penalty goes away.

That section was recently updated, so I suggest you delete the 1099-R and carefully re-enter it.   You should not be penalized for properly taking your full RMD. 

 

How to delete forms in TurboTax Online

 

How to delete forms in TurboTax Desktop

 

Where do I enter a 1099-R?

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