Question

The new tax bill eliminated the RMD I owed for 2020 filing. What happens to the federal tax that was withheld by the custodian when the RMD was issued to me?

Forum|Forum|6 years ago
March 28, 2020
9 replies
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TurboTax Premier Online

It depends. If the taxes have already been withheld, the tax will be credited to your account as a tax payment with the IRS. If the distribution did occur, even though it was not required, you could still receive Form 1099-R and have to report that income.

I suggest consulting your financial planner for information about their particular method of reversing an unneeded RMD.

See this article for information about Reporting Form 1099-R.

Please see these resources for further IRS guidance:

January 27, 2020 IRS Provides relief to financial institutions affected by tax law change raising the age for required minimum distributions

Notice 2020-6 Relief for Reporting Required Minimum Distributions for IRAs for 2020.

IRS Retirement Topics RMDs

fanfare

Employee

The new $2T CARES bill eliminated the REQUIREMENT for the RMD.

If you already took the RMD, then pay the tax on that.

Note: You have 60 days to roll the money back into your IRA (or a different IRA).

Depending on the date of distribution, that 60 day period may have a few day remaining for you to take advantage of.

M

mcgintyboyAuthor

How would you roll the RMD back into your IRA?

What if you delete the RMD from the worksheet but leave the tax paid there? Since the tax has already been sent to the IRS by the custodian it will show as a credit to total taxes paid and be refunded.

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marthacarter

I want to complete my 2020 taxes.

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marthacarter

My taxes were rejected.

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marthacarter

I paid you to file my taxes and you told me that I had to contact you to give you my gross number, and I paid $30 for you to do them. Here is my order[Removed] and my case # is [phone number removed].

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marthacarter

What do you mean Edmonton?

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marthacarter

I don’t owe you or irs anything.

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marthacarter

Explain to me what end means. What does it stand for?

macuser_22

Employee

@marthacarter wrote:

Explain to me what end means. What does it stand for?

I have no clue what you are asking. This thread is about federal tax withholding in 2020 on a RMD and has been answered in prior posts in this thread.

If you have a new question then ask a new question and provide the details.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

M

marthacarter

Can you put me in my 2020 account?

M

marthacarter

Can you put me in my 2020 taxes?

VolvoGirl

Employee

Do you need your 2020 AGI to file?

You need your 2020 AGI to efile 2021. The AGI is on 2020 1040 line 11. If you filed a Joint return you use the same AGI for each spouse.

How to find the AGI.
https://ttlc.intuit.com/community/agi/help/how-do-i-find-last-year-s-agi/01/25947

If you didn't file 2020 or filed it later in the year or mailed it, then try entering 0 for the AGI. If that doesn't work you will have to print and mail your return.

Or request a transcript from the IRS
https://www.irs.gov/individuals/get-transcript