Many years ago, before TT was even known as MacInTax, I did my own tax returns by crafting Excel spreadsheets that were all linked.
Later, after the advent of MacInTax, I switched to it. At some point, I became a beta tester, a role I filled for several years. Often I reported minor bugs that did not get fixed and reappeared each year.
I’ve just reviewed my return and do not see the issue described in this chain. I did note that each 1099R entry required an answer for the RMD amount.
As far as the IRS checking RMD, I think they have no clue as to how much it should be. This number is not reported by the IRA or other account holder to the IRS.
I don’t think the IRS routinely checks for RMD, but they certainly know (or can calculate) the RMD amounts. RMD can easily be calculated from the end of year balance (which is reported to the IRS) and your age.
The problem I have is that I did not take any money from one IRA at a bank, which did not send me a 1099R because they sent me no money. Instead I took the amount of the bank RMD from the other IRA at an investment company. This is the same problem that others have mentioned. What makes this all so difficult is the complexity of the tax code and the different ways each of us use to handle retirement income.
I think the way this needs to be handled is to create a 1099R for the account you took no money from. Show zeroes. Put the proper RMD in. For the account you took excess ( over RMD) list the proper RMD for that account. Do all of this in ‘forms’ mode. It should come out correctly. I just tested this on a copy of my unfilled return and it does not show me owing extra money.
The end-of-year balance is NOT reported on the 1099-R. Another item not shown on the 1099-R (but has a box on the 1040 tax form) is the amount of any Qualified Charitable Distribution (QCD) you made.
When I worked at the IRS, the end of year balance was included on one the forms we received. I believe it was on the Form 5498 that they receive from the institution. It was not on the 1099R that the IRS receives.
Yes, form 5498 contains the FMV of the IRA (as well as contributions and the RMD required to be taken in the following year, although of course only for that account). Now whether the IRS uses that for automated matching I don’t know, but they theoretically could if they don’t.
I found a way to fix the problem, but it relies going to the FORMS view (Form 5329-T). Under Part IX (Additional Retirement Accounts not covered by 1099-Rs I see three columns. one for RMD for accounts, a second for Distributions and a third for undistributed RMD. There are three rows for data, the top for the sum of RMD for all forms 1099-R, the second for distributions, and the third showing undistributed RMD. The second row is for addition RMD for which you did not receive a 1099. Look closely and you’ll find three places where you enter numbers. Under the RMD for accounts with Form 1099-R, enter the RMD from those account(s). Under the distributions for those accounts, enter the total distributions. Under the the Additional accounts, enter the RMD from the accounts from which you did not get an RMD. The smart worksheet will calculate the Undistributed RMD and the totals, and BINGO, you’ve solved the problem. It’s MUCH easier to figure that out on the forms than in the EasyStep, where the instructions are cryptic at best.
OK, I was able to file my tax forms and seemingly receive the proper refund.
I have been updating TurboTax for a couple of weeks now, hoping to see my refund be calculated as it was a month ago. It didn’t work. I had no time to look into it further until this week.
I went back through EasyStep and revisited all the RMD and QCD prompts. An ADDITIONAL question page had appeared!!! (No notice, change log, or “What’s New”, of course.)
After I responded to that trivial question, my refund was done correctly.
Glad to hear that. I didn’t see it in EasyStep but yesterday went to FORMS at the RMD question and was able to get that to work so I could handle the distribution properly when I had distributed the RMD as shown above. I waited to do the final check today and sent it off, with the proper refund.
A bug I have seen in several past versions is that the numbers on the brief instructions for what to do, and/or the interview view, do not agree with those on the form view. In those instances the numbers shown in form view were correct.
For the 2023 tax year I filed with the extended deadline. TurboTax was updated several times during the summer, long after the normal filing deadline, including in August and September if I recall correctly. No comment was given on what was changed, and I did not notice any difference in my forms.
This year I chose to wait to order until yesterday, trying to give Intuit as long as possible to revise with bug fixes. The Amazon page said “Available now”. I placed the order and went to the download page. My order was listed, but no download button. Many years of past purchases of TurboTax were all listed, and each had a download button. I went through many pages of automated help, but none were helpful. My Apple Card was charged when I placed the purchase. Today (a day after the purchase) I looked again. Still no download button.
My guess is Intuit realized their product was defective and not ready for release, so they pulled it until they can make a less buggy version. Whatever is going on, it would be better if some notice were posted. Making the product unavailable a month before its use by date, and still charging for it, is unsettling.
Can anyone offer any insight as to what is going on?
If my guess is correct and a major revision is in progress, current uses might want to wait for the update, and not waste time trying find and work along bugs that might be fixed soon.
I bought TT through Amazon in January. There were two updates this week but no indication the software was temporarily disabled or replaced with a new, full version. Two updates within seven days was unusual but the file sizes of both updates were typical. I also did some work on my return this week without any problems.
As I recall, downloading and installing TT was a multi-website process. After receiving a registration code from Amazon, I downloaded the installer package from a TurboTax webpage referenced in the registration code email. I don’t think the download was initiated from a TurboTax account history screen; in fact, I don’t think the download even required a TurboTax/Intuit login.
Now that you mention it, I had the same experience; it took visiting multiple sites to get download the whole thing including registration.
Probably some bureaucratic bungling at TurboTax. They were aware of problems with retirement income calculations, and it was hard to pin them down.
As far as the big picture is concerned, I have come to suspect there are more problems with the instructions by Turbotax than with their tax calculations. Most of us don’t understand tax laws very well, and they keep getting more complex.
Thanks to Halfsmoke and David Tuma. I got the registration code from the Amazon page and used it as described by David, and now TurboTax is downloading.
My difficulty was on the Amazon Your Games and Software Library page. My purchase of TT 2024 is shown, but still no download link there. My purchases of TT 2019 - 2023 are all shown there, and all have download links. I do not think I ever had to go directly to Intuit for the download before. Looks like a problem with Amazon. It seems their confirming email links to the Intuit download site. In contrast with earlier years, the Amazon Your Games and Software Library page does not work for 2024.
I don’t think it’s an Amazon problem. I think TurboTax changed their distribution method this year, and it is only available from their website. For example, in the past you could purchase a CD copy in Costco, and other stores, but this year, you could only buy a box with a license code within, and the download is direct from TT. In previous years, you could download the software directly from Amazon, Costco, etc. or buy a CD and install it.
