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)?
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.
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
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.