Is Federal tax with held from a RDD also considered an Estimated Tax Payment?

[rjs · Accepted solution]

No, tax withheld is withholding, not an estimated tax payment.

I assume you mean RMD, not RDD. You should have received a Form 1099-R for your RMD withdrawal from an IRA or other retirement account. The federal tax withheld is in box 4 of the 1099-R. Just enter it in TurboTax as it appears on the 1099-R. TurboTax will handle it correctly. It will be included in the total tax withheld on Form 1040 line 16.

[fetting9501]

OK, I entered the amount of FIT withheld but there is no place to enter the date. I took my RMD in January but TurboTax computed an underpayment penalty. How do I override this.

[rjs]

@fetting9501  The date doesn't matter for withholding. All withholding is treated as having been withheld evenly over the year. That's why there's no provision for entering a date. Estimated tax payments are treated differently, and you can enter a date for estimated tax payments.

If the underpayment penalty is caused by a large IRA distribution in January, and you did not make any estimated tax payments, there is probably no way to eliminate the penalty.

[fetting9501]

OK, thanks