How do I document an education exception for an early Roth distribution?

ak3500 · ‎June 1, 2019

I've added a 1099-R for a ROTH IRA early distribution that was used to pay for our daughter's college bill. We have a 1098-T from her school that shows tuition payments net of any scholarships that is higher than the IRA distribution. I'm using TurbuTax Business version, and I cannot seem to get the program to determine that the early distribution is non-taxable because of the exception for educational expenses. Help!

Cindy0H · ‎June 1, 2019

This should be entered in your personal return, not your corporate or partnership return.

In TurboTax when you enter your Roth 1099R, line 7 should be "J". You should also check the box for IRA. At the summary (see screenshot), click continue and you will be asked more questions. You will get to a page about exceptions to the penalty (see screenshot). This is where you can enter the educational expenses.

How do I document an education exception for an early Roth distribution?

Retirement tax questions