Yes. You will need to use the Deluxe online edition if you had an early withdrawal from a 401(k) account. The 10% early withdrawal penalty can only be assessed on a Form 1040, which is not supported by the Free online edition.
The penalty will be entered on Form 1040 Line 59 as a tax liability.
To enter a form 1099-R -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R
