Noooo.....ahhh, Yeah, the software does this.
You set it at a NO.
And it keeps that as long as you don't edit that 1099-R again......IF you go thru it again, yep, it resets and asks again
If you have it set properly, and want to know if a penalty was applied, you can look at line 23 of your 1040. If no $$ there, then there was no penalty. IF there were some $$ on line 23, then you'd have to look at the Schedule 2 (line 8 ) for the exact source.....(because you might have other additional taxes that add into line 23 of the 1040).
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I tested this on the Desktop software with box 7 being a code 7, and saying NO to the early withdrawal (for someone turning 59.5 in 2024), gives the proper result with no penalty....no schedule 2 either. Unless I went back and edited the 1099-R again and stepped thru the follow-up...yep, I had to reset the NO. Just don't go back once it's set right (unless you have to for some other reason).
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I have no idea why the software folks don't trust the box 7 being a code 7, and just not ask the question 59.5 question.
(Military folks can retire long before age 59.5...but I don't know if their 1099-R forms are coded 2 (exception to age 59.5), or 7)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
