TurboTax Deluxe desktop generates a Form 5329-T for payments from a NONQUALIFIED annuity that I purchased and annuitized in 2023. (There was no Form 5329 in 2023 TurboTax Deluxe desktop.) Now in 2024 TurboTax Deluxe desktop, Form 5329-T (Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts) is created and shows pre-populated exception 12 ("distribution incorrectly indicated as early distribution...Include on line 2 the amount you received when you were are 59 1/2 or older.") The amount on line 2 is the GROSS distribution in 2024, not the TAXABLE AMOUNT shown on line 2 in Form 1099-R from the insurance company that sold me the annuity. The 1099-R form shows 7D in line 7 distribution code ("annuity payments from nonqualified annuities"). (The TurboTax forms library for my 2024 1040-SR shows Form 5329-T with the GROSS distribution amount and only exception 12).
1. Can the TurboTax Deluxe Desktop software be updated/corrected so that Form 5329-T is generated by TurboTax since the 2024 distributions (a) were regular monthly payments (exception 2 should apply-"distributions made as part of a series of substantially equal periodic payments", (b) were NOT early distributions, and (c) the nonqualified annuity is not a "tax-favored retirement plan? Other software error: IRS instructions for Form 5329 indicate code 99 ("enter this exception if more than one exception applies") but TurboTax does not allow me to change the pre-populated code 12 if more than one exception applies, i.e., Exception 02-"substantially equal periodic payments" and Exception 12-"distributions incorrectly indicated as early distributions).
2. Can Form 5329-T be deleted and not filed with Form 1040-SR with IRS either electronically?
