Error calculating TAX for RMD

[John_Bissell]

TT says they are fixing this and you can sign up to receive info when the update is available.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-income/getting-rmd-distributi...

[ar10navt]

I did not get a notification from Turbotax that the RMD problem was resolved. However when I started turbotax deluxe today , updates were available. So I let it install the updates. RMD calculation error is still there. I wonder if the whole tax process has to be done over, or maybe this was not the fix for the problem. Other tax software is beginning to look like an option.

[wbmeredith]

You are correct. This latest update did not fix the problem. I haven’t received notice that it was fixed either, but it did an upgrade when I started up yesterday.
With all the effort we’re putting in to see if they fixed this, we could have done our taxes manually. 
I’ve been using TurboTax for almost 40 years and have never been so frustrated. 
i feel like i have been cheated out of around $80 for the Premier version since this is unusable. 

[DawnC]

We are still working on the RMD issue.   You can sign up for notifications in the link below.

RMD Distribution Amount Error 

 @ar10navt 

[ar10navt]

Thank You

I have put myself on the list several times.

When I worked in Software 18 years ago, you did not put on a patch, a fix or new module, without a backup plan to restore the software back to the original state. And there was not a four week waiting period it had to be done as soon as possible if there was an error impacting users.

Of course I am an old dinosaur and my methods are probably out of date with todays software.

[sandylw81]

Just want everyone to know the RMD calculating problem has not been fixed. I would love to file my taxes even though I owe money, but I do not want to file them when I have to lie about my RMD to get the correct of taxes due. What is everyone else doing?

[wbmeredith]

I got tired of waiting for TT to fix the error. I filed using the $350 amount due vs the$5500 penalty amount. 
I have been a TT user for around 40 years, but at this point I’m not sure what I’ll use next year. 

[sandylw81]

I have been using it ever since Intuit bought Turbo Tax. I'm with you not sure what I will do next year. I am going to wait a little longer before I file just to see if they fix the problem.

[wbmeredith]

Yeah, as someone who has done some coding, I can’t see what is so difficult about fixing this issue. All they need is a field for total RMD required, then compare the sum of the amounts withdrawn against that figure to determine shortages and/or penalties. 
basically I do that in an Excel spreadsheet. 

[dmertz]

"All they need is a field for total RMD required, then compare the sum of the amounts withdrawn against that figure to determine shortages and/or penalties."

It's nowhere near that simple.  While RMDs for traditional IRAs are permitted to be combined and RMDs for 403(b)s are permitted to be combined, RMDs for IRAs and 403(b)s are not permitted to be combined with each other.  Also, RMDs for inherited accounts are not permitted to be combined with RMDs for owned accounts, although RMDs for accounts inherited from the same beneficiary and subject to the same RMD calculation can be combined.  RMDs for other types of retirement accounts are not permitted to be combined.  As a result, TurboTax developers put on the user the responsibility for determining what RMDs can be combined RMDs.

[mr11]

Same or similar question - 

I received an inherited RMD which is on a 1099-R and was taxed. But when you get to the RMD field, it would seem you should enter what was indeed paid out but when doing so you get whacked with a huge penalty. Why would you get a further hit on a death related RMD?? And are you supposed to report the RMD this way or is it saying that you should report only that which you were supposed to get an RMD for and did not??

Most of you are speaking of multiple IRAs and trying to total the RMD requirement. We only have one inherited IRA and are meeting the RMD so why is it all being treated like there should be a penalty?

Might be just an adjustment to get to our actual tax rate but for the fact that it isn't our tax rate and only shows up when a enter the RMD number. The 1099-R doesn't show what the RMD is but these are indeed RMD payments and must be within that limit so there should be no over/under problem.

[mr11]

So here's something strange. After being in and out of the income section for the IRA/RMD, it finally leveled out. IDK, I've been in several other TT areas where tax will count up only to be removed after a later confirmation question but I should have been past that...

[sandylw81]

Are you saying they fixed the problem? I tried yesterday and if I did the correct amount of the RMD then I owed thousands in taxes.

[sandylw81]

Turbo Tax has not fixed their programing problem on the RMD. I'm wondering if they will get it fixed in time to file my taxes.

[wbmeredith]

It’s like they won’t even acknowledge the problem.
I filed mine using the incorrect inputs in the field. That resulted in a tax due payment without the $5000 penalty. 

hopefully that won’t come back to haunt me. 
maybe next time I’ll just do my taxes manually, probably easier than screwing around with this nonsense. 
Around 40 years of using TT and I have never been less confident.