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Level 1
March 16, 2021
Question

I took a 401k distribution (over age 59 1/2) to pay for my adult child’s rehab, is this a qualified deduction?

He did have an income personally of 16k & paid taxes

2 replies

RayW7
Alumni - Intuit
March 16, 2021

If you are over 59 1/2 that in itself will be sufficient to eliminate any early withdrawal penalty.

 

In addition, if it was related to COVID then you could have extended repayment options if you choose to do so. 

 

You will have to pay tax as ordinary income on the withdrawal.

 

-follow these links for more information-

An Early Withdrawal From Your 401(k ... - TurboTax

2020 Stimulus: Tax Relief for This Year's Taxes - TurboTax ...

Alumni - Champ
March 16, 2021

No, since the expenses were not your own.

 

But you may be able to claim the expenses of a "Medical Dependent" as an itemized deduction.  Per IRS Pub 502, you can include medical expenses you paid for an individual that would have been your dependent except that:

  1. He or she received gross income of $4,300 or more in 2020;

  2. He or she filed a joint return for 2020; or

  3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's 2020 return.

Did you provide more than 50% of his total support for the year?