Why is TurboTax not including federal income tax withheld as part of RMD distribution?

[sskbsutton]

There is a $4000 distribution with $400 federal income tax withheld. I should get credit for a $4400 RMD distribution, but TurboTax only says $4000.

[Opus 17 · Accepted solution]

You need to look at your 1099-R.  One possibility is that you withdrew $4000, had $400 of withholding, and received $3600 net.  That should have $4000 in box 1 and $400 in box 4.

Another possibility is that you withdraw $4400, had $400 withheld, and received a net of $4000.  Then your 1099-R should have $4400 in box 1 and $400 in box 4.

If your 1099-R is wrong you have to contact the broker for a corrected 1099.  If it was case #1 where you withdrew $4000 and netted $3600, then it is, in fact, a $4000 withdrawal.  The withholdings from box 4 go to your credit, but may not represent the total amount of tax owed, which depends on all your other income, deductions and credits.