1099-R Distribution Codes

Forum|Forum|4 months ago
January 30, 2026
2 replies
8 views

Hi. I had an early distribution (withdrawal for hardship medical) and when I enter the information for my 1099-R the distribution code is 1B. Turbo Tax doesn't have follow-up questions to avoid the duplicate 10% penalty tax. Am I doing something wrong?

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AmyC

Level 15

The code 1 indicates penalty and the issuer had no knowledge of an exception. You need Form 5329 to get the hardship. Once you finish the 1099-R entry, search for 5329 and select medical.

Warning- only medical bills over 7.5% of your AGI will go against the penalty. If your medical bills do not exceed 7.5% of your income, then you will have a penalty.

For the medical expenses, claim every bandage, COVID test, trip to doctors, pick up prescriptions, even condoms count. Go through Publication 502, Medical and Dental Expenses finding things to claim.

I am sorry you had such a rough year and hope things are better now.

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dmertz

Level 15

There is no duplicate penalty. Whatever amount was withheld from the distribution for federal taxes and shown in box 4 of your Form 1099-R is credited on line 25b of Form 1040.