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Distribution From a Qualified Retirement Plan-Exception
If I am exempted from paying tax on early distribution from a qualified retirement plan. how do I enter that in Turbo Tax?
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Deductions & credits
On your 1099-R form, the amount that is taxable is listed in box 2. If that amount is wrong, you may need to get your 1099-R form corrected by the company that sent it to you.
The code in box 7, indicates your tax status for this distribution. For an early distribution, you will get 1 or 2. Code 2 means, that a penalty exception applies.
After you enter the 1099-R information in Turbo Tax, you will see a screen telling you that you are paying extra tax on this distribution. After that, they run some of the exceptions to the early withdrawal penalty. Be patient because there are a lot of questions.
Eventually, you will get back to a screen called Your 1099-R entries. Click Continue again and you be asked about all of the remaining exceptions to the penalty.
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Thanks for your reply. Do I need to file the complete tax return, or just the form to amend the return?
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Deductions & credits
If your return has already been filed and accepted (or still shows pending) you will need to amend your tax return.
Here is a TurboTax Article on Amending your tax return. If this is necessary you will only change that area of the return that pertains to your 1099R entry: Amending my Tax Return
If you have not filed yet, you can just go back through the screens as outlined in JulieS answer below:
On your 1099-R form, the amount that is taxable is listed in box 2. If that amount is wrong, you may need to get your 1099-R form corrected by the company that sent it to you.
The code in box 7, indicates your tax status for this distribution. For an early distribution, you will get 1 or 2. Code 2 means, that a penalty exception applies.
After you enter the 1099-R information in Turbo Tax, you will see a screen telling you that you are paying extra tax on this distribution. After that, they run some of the exceptions to the early withdrawal penalty. Be patient because there are a lot of questions.
Eventually, you will get back to a screen called Your 1099-R entries. Click Continue again and you be asked about all of the remaining exceptions to the penalty.
**Mark the post that answers your question by clicking on "Mark as Best Answer"