Federal tax due increased after turbo tax update today.

Forum|Forum|1 year ago
February 20, 2025
1 reply
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Just updated turbo tax today. My taxes had been completed but not filed. My federal tax due increased over 10k. It looks like I am being charged an RMD withdraw penalty now. I did withdraw my full required RMD amount on time.

Best answer by tegethom

I went back and edited the 1099 entries. I had taken two RMD withdraws from the same account a month apart.

The two withdraws equaled the total required RMD amount for 2024. Going thru the follow up questions after entering the financial info, a new question appeared, "A corrective distribution of the shortfall amount was made within the window". Providing a "YES" response to this question corrected my problem.

Interesting fact: When I was initially trying different things to fix my issue, when I included my two RMD

withdraws as single entry, totaled both federal & state from both withdraws, my federal tax due changed to me getting a refund. In the test the total RMD value was the same in both situations.

Wonder why the results were different.......

SteamTrain

Employee

You might need to edit each 1099-R, and answer all the follow-up questions about the RMD amounts again.

They added a bunch of new questions that are supposed to clarify the situation for a ton of folks where it mis-reports the RMD amounts. Do it even if yours was OK before the update.

Once you go thru each 1099-R, then "Continue" thru the interview to work back to the main menu...there's at least one more new question that asks if you took all the required RMDs for the year.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

tegethomAuthor

Thanks! I will do what you suggest tomorrow & then post an update.

tegethomAuthorAnswer

I went back and edited the 1099 entries. I had taken two RMD withdraws from the same account a month apart.

Interesting fact: When I was initially trying different things to fix my issue, when I included my two RMD

withdraws as single entry, totaled both federal & state from both withdraws, my federal tax due changed to me getting a refund. In the test the total RMD value was the same in both situations.

Wonder why the results were different.......