@DIY_Tax_Person wrote:
For my 2018 Return, TurboTax doesn't even allow me to enter numbers onto the 5329 form. It's greyed out and doesn't respond to typing in numbers in the fields. However, if I change the code from 2 (early distribution - exception applies) to 1 (early distribution - no known exception), then my taxes go up in those real-time state and federal windows.
For 2019, in TurboTax, whether I enter numbers into form 5329 or not, the taxes due to federal and state are the same. The tally seems to be solely dependent on the distribution code (1 or 2).
The code on line 2 is calculated value and not directly entered. It should come from the interview question answers. But if you are entering it min the forms mode then you enter SEPP amount on line "B" on the 5329 form "Distributions not subject to additional tax" in column A or B depending if it is a SIMPLE or non SIMPLE distribution.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
