Can you clarify why you need to certify that you have a terminal illness?
If you have been declared disabled, you can indicate that in the MY INFO section in TurboTax, and no documentation needs to be sent to the IRS with your tax return.
I have Stage IV rectal cancer and am terminally ill, but I am fortunate to have saved over $5 million in my 401k, but I'm 58 so if I withdraw money for "bucket list" items I would normally have to pay a penalty, but I see there is an exclusion for terminally ill patients hence my question. How do I certify I am terminally ill to the IRS so I do not have to pay a penalty on my 401k withdrawals?
You take the exception on your tax return. Distributions made to a terminally ill employee, on or after the date the employee has been certified by a physician as having a terminal illness, qualify for an exception to the early withdrawal penalty. If you qualify, enter the exception and keep the certification with your tax records. You don't need to attach it.
You have a permanent and total disability if you can't engage in any substantial gainful activity because of your physical or mental condition. A qualified physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death. See Physician's statement, later.
Thank you for the speedy reply, but I'm afraid you didn't answer the question.
HOW do I certify? A letter from my doctor? An IRS form? A letter and a medical diagnosis?
I have an MRI report that states my Stage IV status. If I combine that with a letter from my oncologist is that enough? Does the IRS provide guidance?
Thanks,
JP