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Retirement tax questions
It depends. Since owing taxes could stem from any number of things, it could be coincidental. Or, it could be that you are being penalized on early withdrawal, which is a 10% penalty.
Make sure you do indicate that you used the money for tuition.
Here's how to do this in TurboTax Online:
- Navigate to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R) Add/Edit
- Your withdrawal will be shown in a summary on a screen that says "Here's your 1099-R info"
- Choose "Continue"
- Continue through the interview until you arrive at a screen that says "Did you use your IRA to pay for any of these expenses?"
- Here, enter the amount of the withdrawal spent on tuition.
‎April 11, 2025
5:11 AM