Hello.
We are doing the taxes for my son.
He is a first time home buyer and he took a hardship withdrawal from his 403 B (teacher) of $30,000.00 to buy a home here in CA. He knew it would be added to his income, but thought it would not be subject to the extra 10% penalty because it was a hardship withdrawal that was allowed by the plan.
In doing his taxes on Turbo Tax Home and Business, it is charging the 10% penalty. The program does not ask why the withdrawal was taken (for first time home buyer).
How can we remove the substantial penalty. or is this correct as is??/
Thank you.
Bob
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