Retirement tax questions
Keep a copy of your settlement statement with your tax return in case the IRS questions the distribution in the future.
To indicate that the withdrawal from your IRA is for a first-time home purchase, and not subject to the 10% penalty, please follow these steps:
- On the 1099-R entry screen, make sure you check the IRA/SIMPLE/SEP box below line 7.
- Several screens after the 1099-R entry screen, you will see Did [you] use your IRA to pay for any of these expenses?
- Enter the amount in the box First home purchase. [See screenshot below.]
