My wife and I both withdrew $10k each from our 401k/IRA accounts towards the purchase of our first/primary home. I was told that these IRA distributions are allowed/penalty-free as long as the amount is below $10k per person and when filing our taxes we specify that this distribution was for a first time home purchase. Now, will I be able to do this in TurboTax next year, or will I have to use a tax preparer?
Yes, TurboTax can do that to waive the 10% penalty.
However, you said "401k/IRA". The penalty exception for a first-time homebuyer only applies to IRA withdrawals, not 401(k) withdrawals. So if either of you withdrew from a 401(k), that penalty can not be waived.https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...
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