How can I add form 5329 to the desktop version? I need to include a statement requesting a waiver to my 5329 filing. How is this done?

[LisaS]

If you go thru the interview flow you just need to answer all the questions in the retirement area to show that you have an exception.  If you want to see the form in forms mode on desktop use the "forms" icon in the upper right corner to see forms.  Then on the left hand side you should see the form listed and you can select it to open it up.

[kimdodge]

In forms mode I can only see the forms I already have.  Is there a way to add a new one and do it manually?
In the interview in the retirement section there is only an area to enter the 1099R information.  There is nothing I can see to note an exception.

[LisaS]

At the top of the list of forms you can search on the form (type in 5329) and it should come up.  If there is not one on the list of forms then it sounds like you don't have a penalty that you need to remove.

[kimdodge]

This is not really helping  -

Let me clarify the issue.  I did not take the RMD in 2018.  I understand that I should submit a form 5329 and in the instructions for that form I can ask for an exception.
1/  Is there a way to add a 5329 and exception note into my TT Desktop edition?
2/  If I end up manually preparing the 5329 can I e-file my return and mail the 5329 separately?  Or would I have to paper file the whole thing?

[LisaS]

Thanks for the clarification - It will take me a minute to answer but I wanted to let you know I'm typing it up.

[LisaS]

If you have the form open, scroll down to the last section (part IX).  
-You can enter in the amounts you were required to take and you should see a "box" "Waiver of Tax Smartworksheet" to fill in for the amount you are requesting to be waived.  
-In that box is a grey button "explain" for you to attach your statement (you'll type up what the reason is) and that will attach to your return.

[kimdodge]

That would work if there was a 5329 in my return, but there is not one.  Back to my original question - How can I add this form?
I went into the retirement questions and the only thing I see is to enter the 1099R's.  How can I get TT to generate the 5329?

[macuser_22]

First, if you have not taken the missed RMD, take it ASAP so you can tell the IRS in the explanation statement that it has been taken.

You will need to file a 5329 form and request a waiver of the penalty.  (The waiver would only be denied if there is no reasonable explanation and the missed RMD was not taken at all.)

 Unfortunately this can only be done using the "forms" mode that is only available with the desktop software if you do not have a 1099-R to file.   

If you do have a 2018 1099-R to report then the RMD question in the interview will go to the form 5329 waiver interview if you say that the 2018 RMD was not taken.

If you are using the CD/download version:

Enter the forms mode and click on open form.  Type in 5329.  Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return).

Scroll down to Part IX line 52 and enter the RMD amount that should have been taken.  On line 53 enter the amount of the RMD that was actually taken (probably zero if it was missed).

Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount).   Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.

You will not pay any penalty now until the IRS determines if it will grant the waver, then they will inform you if you owe the penalty.

OR - if using the Online version and have no 2018 1099-R to file, you will have to prepare the 5329 manually .

Download the 5329 form from the IRS website and fill it out the same as above.  Print and mail your return with the 5329 form and explanation attached as described in the 5329 instructions.

The 2018 5329 must be attached to your printed and mailed 2018 tax return and cannot be e-filed.

[NOTE: You can only use this method if you are requesting a waver of the penalty and there is no taxable amount on the 5329 form line 55 that must be transferred to the 1040 form]

From 5329 instructions:
Quote:
"Waiver of tax.   The IRS can waive part or all of this tax if you can show that any shortfall in the amount of distributions was due to reasonable error and you are taking reasonable steps to remedy the shortfall. If you believe you qualify for this relief, attach a statement of explanation and file Form 5329 as follows.
   1. Complete lines 52 and 53 as instructed.
   2. Enter “RC” and the amount you want waived in parentheses on the dotted line next to line 54. Subtract this amount from the total shortfall you figured without regard to the waiver, and enter the result on line 54.
   3. Complete line 55 as instructed. You must pay any tax due that is reported on line 55.
  The IRS will review the information you provide and decide whether to grant your request for a waiver. "

Download blank 2018 5329 form here:
Form: <a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/f5329.pdf">http://www.irs.gov/pub/irs-pdf/f5329.pdf</a>
Instructions: <a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/i5329.pdf">http://www.irs.gov/pub/irs-pdf/i5329.pdf</a>

[kimdodge]

Thank you Macuser22 - this is exactly what I needed.