topic Tax year 2024: wrong processing of form 1099-R in Get your taxes done using TurboTax

Tax year 2024: wrong processing of form 1099-R

316pav — Fri, 31 Jan 2025 19:23:35 GMT

After I entered my form 1099-R (I am over 75 yo and tooj the RMD on time) My reponses were:

ROTH? No

Inhereted IRA? No

Was this withdrowal an RMD for 2024? Yes (some or all)

How much of this amount applies to RMD? All of this

What was your required 2024 RMD? Provided number which was larger than in current 1099-R

The program than asked if the dirrerence between the entire 2024 RMD and the amount taken in the current 1099-R was taken DURING THE CORRECTION WINDOW! It should not ask this question; the correct one would be: Did you take the remaining amout when required to avoid penalty?

As a result, the program added additional SE tax through the Schedule 2, line 21. This additional tax is "tax on IRA or other tax-favored accounts", form 5329. In my case, the form 5329 shows my 2024 REQUIRED RMD DOUBLED!!! Maybe because I had two forms 1099-R and each time I provided the TOTAL REQUIRED RMD.

This is definitely a bug to be fixed ASAP!!!

No matter what I answer (yes or no) the program increased my "Federal Tax Due".

Re: Tax year 2024: wrong processing of form 1099-R

Miss MCJ2 — Fri, 31 Jan 2025 19:40:08 GMT

1099-R seems to be giving some strange results. Try answering the question with the same amount of RMD and not a higher number. Sometimes you need to do things like that to make the software work correctly.

Re: Tax year 2024: wrong processing of form 1099-R

PatriciaV — Mon, 10 Feb 2025 20:13:08 GMT

You might wish to review your entries for Form 1099-R or delete your entries and re-enter. Updates to the TurboTax program were released recently that addressed the RMD messages and calculations. Revisiting this section may resolve the questions you have.

@316pav