How do I correct this program issue? A Waiver of Tax Smart Worksheet was generated when it does not apply due to the CARES ACT.

[Ric244]

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.

[AmyC]

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.

[macuser_22]

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@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.

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§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.

[teq]

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?

[macuser_22]

As stated above you must say that it was NOT a RMD.

Delete the 1099-R to reset the answers and re-enter.

[teq]

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?

[macuser_22]

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.

https://ttlc.intuit.com/community/accessing/help/how-do-i-view-and-delete-forms-in-turbotax-online/0...

[Hsfcvuff2017]

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?

[Hsfcvuff2017]

Will the fact that we are in an IRS audit effect our refund for 2020? We still have not received our refund for 2019.

[macuser_22]

Only the IRS can answer that.