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New Member
posted Jun 3, 2019 1:52:51 PM

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

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1 Best answer
Level 15
Jun 3, 2019 1:52:54 PM

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.

4 Replies
Level 15
Jun 3, 2019 1:52:54 PM

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.

New Member
Mar 19, 2021 9:15:22 AM

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.

Level 15
Mar 19, 2021 11:59:35 AM

@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.

 

New Member
Mar 19, 2021 3:49:37 PM

OK, thanks