topic Past year RMDs in Get your taxes done using TurboTax

Past year RMDs

ThickAsABrick — Fri, 08 Feb 2019 02:06:40 GMT

If I paid my estimated annual tax with an RMD (probably over-paying a little for both Fed and State - figuring I'd err high and get something back), do I need to complete the quarterlies section of TurboTax? I imported a 1099R from my brokerage account. Does the software know that this is the equivalent to quarterlies (so-as to avoid penalties)?

Re: Past year RMDs

NCperson — Fri, 08 Feb 2019 13:45:32 GMT

first, did TT calculate you owe a penalty?

if no, then the quarterly doesn't matter.

if yes, I'd wait until the Form 2210 is finalized on Feb 17. (I read elsewhere that line 5 of this form is going to be changed to 85% for this year only, which can lower / eliminate the penalty)

TT won't calculate the quarterlies income to determine penalties, if you are eligible for doing it in that manner.

Re: Past year RMDs

ThickAsABrick — Fri, 08 Feb 2019 16:47:13 GMT

Thank you. So far no penalty is shown (so perhaps the software recognizes that it's an RMD that was used to pay taxes).

I just think it's a little clunky for TurboTax to re-ask the question, or it least it could have asked it in a way that made one feel secure that they'd done the right thing (given it's normally so good at anticipating all these scenarios).

- Mark

Re: Past year RMDs

NCperson — Fri, 08 Feb 2019 16:55:07 GMT

What question did it ask?

What version of TT are you using?

Re: Past year RMDs

ThickAsABrick — Fri, 08 Feb 2019 17:09:13 GMT

It asked if I'd paid any taxes, to which I answered "yes" (as I had paid a huge lump sum in December from an RMD). Then it took me to quarterlies (which I backed out of). Thankfully, maybe the consolidated statement from the brokerage house clarifies that the 1099-R has significantly gone to the IRS.

I'm using a freshly updated version of 2018 TT.