1099-R

Forum|Forum|3 years ago
March 12, 2023
1 reply
14 views

Hi,

I recently purchased a house and will be submitting a 1099-R with my taxes this year. I used the $5,000 I pulled out as part of my downpayment. My partner and I are not married and I will not be claiming the house on my taxes. Will this effect me being able to say what I used the money for? I also was wondering if I need to provide proof that I have $5,000 worth of contribution so I don't get taxed on it?

PattiF

Level 15

The 1099-R that shows the money that you took from your IRA, would have a Code 2 in Box 7. If your form does not show that code in Box 7, ask the financial institution for a corrected copy with Code 2 in Box 7.

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carm_11Author

Level 2

My financial institution is saying that they do not code the 1099 - R like this and that it is my job to show proof that the money was used for my home down payment.

VolvoGirl

Level 15

That's right, you just have to answer the questions. It won't show on the 1099R. What code is in box 7? And what kind of account did you take it out of? The exception for buying a house is only for IRA plans, not 401K or from retirement accounts at work. And it's only an exception to the 10% Early Withdrawal Penalty. You still will owe tax on it.