Using IRA for College Tuition Fees - Education Exception

[TheDarkSide]

I would like to make sure that I can take the education exception from my IRA distribution and make sure that TurboTax will include Form 5936, as needed, for 2021 Taxes.

[Hal_Al]

The TurboTax (TT) interview can handle this.  In will not come up in the first part of the 1099-R section.  Just keep going.  It comes up after the 1099-R, when TT sees that you may have a penalty.  It will then ask about exceptions and prepare form 5329* to claim the exception.

The distribution will be taxed.  It's only the 10% early distribution penalty that is waived. 

*There is no form 5936

[TheDarkSide]

I have tried to get through the interview to give me the exception for education but it does not provide it as an option; therefore, the Form 5329 does not come up.

[AmyC]

On your form 1099-R, if you have a code 1 in Box 7 , then after you enter the 1099-R, it should say, based on your code, you have extra tax and we'll help you check for exceptions. Perhaps you have a code 2 which indicates the exception is already known and accounted for so you do not need the penalty form. If you have a form with a completely wrong code, you may need to have a corrected form issued.