ADD FORM 5329-T

Form 5329-T refers to Federal form 5329 for the Taxpayer.

 

Click on Federal.

Across the top of the screen, click on Other tax situations.

Scroll down to Additional Tax Payments.

Click on Start  / Revisit on Extra tax on Extra tax on early retirement withdrawals.

 

The most common use of form 5329 is to waive exceptions to the 10% penalty for early withdrawal of a pension distribution.

I am using the Premier desktop Turbo Tax. How do I open Form 5329T and add it to my return?

Form 5329 will open and be added to your return in most cases, by answering questions about the reason that you need it. 

 

For example, if you have an early withdrawal penalty and an exception applies to you, you simply need to answer the questions in the 1099-R to add the form. 

 

If you failed to take your Required Minimum Distribution (RMD) and you don't have a 1099-R, you can only add the form in Forms mode of TurboTax Desktop. This is how to do that:

 

Here is how to add Form 5329 and ask for a penalty waiver in TurboTax Desktop:

 

1. Open your return and click on the Forms icon in the upper right corner.
2. Click Open form on the left side near the top.
3. Type in 5329. 
4. Choose 5329-T for the taxpayer (first person listed on your tax return), or 5329-S (for spouse - 2nd person on tax return).
5. Click Open form in the lower right hand corner of the pop up box. 
6. Scroll down to Part IX line 52 and enter the RMD amount that should have been taken. 
7. On line 53 enter the amount of the RMD that was actually taken (zero if it was missed).
8. Then in the box right under line 53 "Waver of Tax Smart Worksheet" enter the same amount as line 52 (the RMD amount). 
9. Then click the "Explanation" button and enter the reason for missing the RMD and your statement requesting a waver.

 

If your situation isn't covered here, please respond back with more details and we will help you.