Retirement tax questions
I can tell it's applying the penalty, because my refund goes down by exactly 10% of the earnings on the one 1099-R that has taxable earnings. When I change it from 8J to 8T, the 10% comes back. It's only $161, so not a big deal, and I'm most bothered by the fact that TT keeps making me choose between 3 options that don't apply to my situation in order to move forward. I have the CD/Download version. I have four 1099-R's total. Two are for removals we did in early 2023 before the tax deadline for 2022 contributions, but they are still 2023 forms. We took losses on both of those, so there was no taxable amount, and I created substitute 1099-R's for those last year (entered 0.00 on line 2a). I can't imagine I need to amend my 2022 tax return since I created substitute 1099-R's and there is no taxable income/impact. The other two are for removals we also did in 2023 for our 2023 contributions. My husband's was for a loss, but mine had taxable earnings. I did have them withhold 24% for federal taxes when I did the removal. Whenever I enter this specific 1099-R with earnings is when the situation happens where TT wants to help me find out if I can reduce my tax burden by finding an exemption. I have tried deleting it and re-entering twice. This is when I get prompted to choose between the 3 options that don't apply and then I get asked to look through the exemptions for that particular type of plan. I really don't know what to do here other than just randomly choose one and then not enter anything for different exemptions. It just seems to be a glitch in TT where the option for Roth is missing. I don't know why you don't get his question if you're entering earnings and choosing 8J. I would think all the versions of TT would have the same f/u questions, but I could be wrong..
