Vanessa A
Expert Alumni

Retirement tax questions

It depends.  The amount that is exempt from the penalty is the amount that is over 7.5% of your AGI.  This means if you have an Adjusted Gross Income of $50,000, then the amount you paid OVER $3,750 would be exempt from the penalty.  If you paid $8,000 total for the medical bills then you would still have to pay a penalty on the first $3,750 (if your AGI was $50,000) and the rest would be exempt from the penalty.

After entering your 1099-R into TurboTax, continue through the questions and TurboTax will help you get the exemption if you qualify. 

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