Where to enter taxes paid in 2024 on missed 2023 RMD

[LynK]

My dad missed his RMD in 2023; we filed a 5329 and took the missed distribution in 2024 within the correction window. In 2024, we paid the full amount of taxes due on the 2023 RMD income. His 2024 1099-R has the total amount for the 2023 RMD plus his 2024 RMD. I filed an extension so we would have more time to figure this out -- Where in TurboTax can I enter the taxes already paid to IRS for the 2023 RMD so that TurboTax will calculate only the taxes due on the 2024 RMD amount?

[fanfare]

Tas withheld on RMD is withholding, Line 25b. Just enter the 1099-R.

Your actual tax is then calculated by TurboTax after all your entries.

Note:  Due to 2024 TurboTax issues.
to avoid wrongful penalty, for each 1099-R, tell TurboTax that the distributed amount is the calculated required amount.

@LynK 

[LynK]

@fanfare The taxes were not withheld; we paid them directly to the IRS. Box 4 on the 1099-R (Federal income tax withheld) is $0. 

[VolvoGirl]

Are you sure you paid the tax and the penalty for missing the RMD?  You probably only paid the penalty.   Otherwise you would have needed to fill out an amended 1040X to add the RMD to your 2023 return.  I think you still need to pay the tax on it since you took it in 2024.  @dmertz 

[VolvoGirl]

What lines were filled out on form 5329?  Was it just part IX Additional tax on excess accumulation?   That is not the actual tax on the amount.   It is an additional tax for not taking the RMD.   You pay it each year you don’t take the 2023 RMD distribution.  

[LynK]

@VolvoGirl We paid $10,969 in tax per IRS bill tied to the 5329 that was filed w/2023 tax return. Have not filed an amended return.

[LynK]

@VolvoGirl Yes, it was just Part IX on the 5329. But we took the distribution in April of 2024 - within the correction window - and received IRS tax payment receipts that were tied to the 5329. 

[dmertz]

Because the 2023 RMD was not taken in 2023, it is not 2023 income and did not add to your taxable income on line 15 of your 2023 Form 1040.  Therefore, no income tax would have been paid on this amount with your 2023 tax return.  However, unless you requested a waiver of the penalty when you originally filed your 2023 tax return, your 2023 tax return would have included an excess-accumulation penalty, shown on line 55 of your 2023 Form 5329.  (It seems that you did not request such a waiver.)  That's an excise tax, not an income tax.  To receive a refund of that excise tax you would have to file an amended 2023 tax return (Form 1040-X) along with an amended Form 5329 Part IX and provide explanation with reasonable cause to grant the waiver.  If the waiver is granted, the IRS would refund the excise tax that you paid when originally filing your 2023 tax return.  If the waiver is denied, there would be no refund.  The IRS instructions for Form 5329 Part IX indicate how to request the waiver:  https://www.irs.gov/pub/irs-prior/i5329--2023.pdf

As others have said, the 2024 Form 1099-R is simply reported on your 2024 tax return, adding you your 2024 taxable come and your 2024 tax liability.

[LynK]

Thanks, everyone for your time and expertise in answering my question.

 @dmertz, I did request a waiver per IRS instructions and did make the corrective distribution. So I assumed the amounts my dad paid in 2024 were to "catch up" on paying income tax on the RMD distribution, but now I realize this is likely the excise tax. We need to revisit the 5329 he filed -- after looking at it, I believe it was not filled out correctly, and maybe we can reduce the excise tax from 25 to 10 percent.

I have a meeting w/a CPA today to try to sort it out.

Thanks again, everyone; I appreciate your help in working through this.

[Mike9241]

if the $10K is on the 5329 is a penalty. not an income tax payment probably 10% of the missed RMD.

you took the 2023 RMD distribution in 2024 during the correction period, so you should report it on your 2024 tax return. The RMD is considered a distribution from the previous year, so it should be reported in the year it was taken. This is important to ensure that you are accurately reflecting your income and any applicable penalties or interest on the RMD.

the IRS can waive the entire penalty but that requires a statement as to the reasonable cause for the failure and only the amount of penalty you are not waiving would be on the 5329. It's probably best at this point to consult with a tax pro.