I am 73 and have taken RMD's for several years, but elected to take a reduced amount in 2020. The program is treating it as if an RMD is required. Working on the Deluxe desktop version.
Yes, the program still asks about RMD. Please select the answer that none of it was RMD. RMD was abolished for 2020 so there was no RMD required.
@AmyC wrote:
Yes, the program still asks about RMD. Please select the answer that none of it was RMD. RMD was abolished for 2020 so there was no RMD required.
§2203 of the CARES Act did not "abolish" RMD's, it temporary waived RMD's for defined contribution plans and IRA's. RMD's for other types of retirement distributions reported on a 1099-R were still required and not waived.
See §2203 of the CARES act.
I followed the directions provided but I still get a smart check saying that Form 5329-T: Waiver of tax should not exceed the minimum required distribution shortfall. And it gives me a number for a Waiver of tax. Have repeatedly tried to correct this problem with no success. Is there something else that should be done during entry of information or is there a programming problem?
As stated above you must say that it was NOT a RMD.
Delete the 1099-R to reset the answers and re-enter.
I removed the 1099-R and entered the information again. The I followed the directions above but still got the same smart check worksheet error. I found that if I changed the value in the smart check work sheet to zero the tax return passed the smart check. Still don't understand why this was happening. Any thoughts?
What does the error say?
Do you have more then one 1099-R?
If deleting the 1099-R does not also remove the 5329 form then delete the 1099-R and then delete the 5329.
WE are in a tax court situation for 2018 that has not been resolved. We have not received our refund for 2019 either. Will the IRS freeze 2020 refund as well?
Will the fact that we are in an IRS audit effect our refund for 2020? We still have not received our refund for 2019.