Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Dec 23, 2021 11:08:14 AM

Claiming SSDI and withdrawing from IRA

I want t take as much cash as I can from my IRA before the 2021 year ends. I dont want to pay any taxes. There should be no early penalty because I am disabled. Married jointly. 57 years old. So for this year 2021 my income was from SSI and a supplemental disability insurance policy. 

SSI =                                  $11,251

Disibility ins policy =        $2,543

TOTAL 2021 Income     =$13,794

 

Home ln int pd            $10,260

Property tax pd            $ 3034

Car Reg fee dedutable  $150

Charities                            $500

 

So I want know how much I can take from my IRA without being taxed or penalized. Married jointly and my wife is retired. She has no income to report. I think I can take about $20,000 from my IRA. Does this seem right? Thanks, G

0 12 944
12 Replies
Level 15
Dec 23, 2021 2:57:48 PM

You can use the free version to make this calculation ...  https://turbotax.intuit.com/personal-taxes/online/

Level 2
Dec 23, 2021 3:06:00 PM

I dont need the free. I already paid for the 2021 TTax Delux. I thought I could ask a question to a tax person? 

Level 15
Dec 23, 2021 3:18:27 PM

Ok ... so you have the program ... enter in the SS income and then complete the 1099-R section for a conversion... keep changing the amount distributed and converted until the refund meter shows a balance due ... then reduce the amount until it goes to zero.  If you have the downloaded version you can switch to the forms mode and look at the 1040.  We cannot give you an accurate estimate with the info you have posted. 

Expert Alumni
Dec 23, 2021 3:44:40 PM

You can also ask a Tax Expert about your return by utilizing TurboTax Live services.   

If you did not already pay for TurboTax Live service, you can select the "upgrade" button in the left column menu and then select Live.  

If you have already purchased the TurboTax Live product, then you can select the Live Help button in the bottom right corner.  

See more information in the links below:


 

How do I connect with a tax expert in TurboTax Live?

 

How do I get TurboTax Live?

 

@gk26 

Level 15
Dec 23, 2021 3:48:13 PM

If you bought the Desktop CD/Download Deluxe program you can't use LIVE or Live Full Service.   Those are only available for the Online versions. 

Level 2
Dec 23, 2021 4:31:20 PM

I bought the online download from Amazon. I cannot find the upgrade to live. There is a upgrade to the Premier. But nothing about the TurboTaxLive upgrade. Getting frustrated here.

Level 15
Dec 23, 2021 4:34:20 PM

Did you see my post above yours?   Live is only in the Online browser version, not in the Desktop program.  Sorry.

Level 2
Dec 23, 2021 4:39:12 PM

I did see. You said a CD download. I did a online download. Mixing words here. Delete this whole tread. Nothing useful for anyone

 

Level 15
Dec 23, 2021 4:47:17 PM

Again ... since  you have the program ... enter in the SS income and then complete the 1099-R section for a conversion... keep changing the amount distributed and converted until the refund meter shows a balance due ... then reduce the amount until it goes to zero.  If you have the downloaded version you can switch to the forms mode and look at the 1040.  We cannot give you an accurate estimate with the info you have posted. 

 

 

 

This is my mini version of  a tutorial  that should be in the downloaded program: 

What is Forms Mode?

Forms Mode lets you view and make changes to your tax forms "behind the scenes."

If you're adventurous, you can even prepare your return in Forms Mode, but we don't recommend it. You may miss obscure credits and deductions you qualify for, and you may forget to report things that will come back and haunt you later.

Forms Mode is exclusively available in the TurboTax CD/Download software. It is not available in TurboTax Online.

                  

Related Information:

                             

If you want to play around with different figures and tax scenarios without affecting your original return you can ….

  • >>>In the TurboTax CD/Download software by creating a test copy
  • 1.  Open your return in TurboTax. 
  • 2.  From the File menu, choose Save As. 
  • 3.  Give the copy a new name to distinguish it from the original (for example, by adding "Test" or "Example" to the file name). 
  • 4. Click  Save. You are now safely working in the test copy and anything you do here will not affect the original. 
  •  https://ttlc.intuit.com/questions/1900642-how-to-make-a-test-copy-of-your-return

                        

  • >>  use the WHAT IF tool: 
  • - Click Forms Icon (upper right of screen) or Ctrl 2 (forms view) 
  • - Click on the Open Form Icon 
  • - In the “Type a form name.” area type What-If (with the dash), click on the name of the worksheet - click on Open Form 
  • - You will see the worksheet on the right side of the screen; enter the information right into the form 
  • - To get back to interview mode - click on the Step-by-Step Icon (upper right of screen) or Ctrl 1

 

Once you have filed successfully … you can shut off the auto updater function and then save the return &  .taxfile.

 

It's always a good idea to make a backup copy of your tax data file, in case your original gets lost or corrupted. Here's how:

  1. From the File menu in the upper-left corner of TurboTax, choose Save As (Windows) or Save (Mac).
  2. Browse to where you want to save your backup.
    • Tip: If you're saving to a portable device, save it to your computer first to prevent data corruption. Then, after completing Step 4, copy or move the backup file to your device.
  3. In the File name field, enter a name that will distinguish it from the original tax file (for example, add "Backup" or "Copy" to the file name)
  4. Click Save and then close TurboTax.
  5. Restart TurboTax and open the backup copy to make sure it's not corrupted. If you get an error, delete the backup and repeat these steps.

If you make changes to your original tax return file, repeat these steps to ensure your original and backup copies are in-synch.

Related Information:                             

 

AND save it as a PDF so you have access to a copy even if you don’t have the program still installed and operational :

AND protect the files :

 

*** Other clues to the downloaded program ***

 

In the forms mode ... double click  or right click on a box on a form to data source it ... sadly it doesn't work on all boxes. 

 

What's the meaning of all the different colors in Forms Mode?

When you look at an onscreen tax form using Forms Mode, you might wonder why one figure is blue and the one next to it is red or black.

These colors indicate the source of that data.

Color

 Meaning

Blue

You entered this data, either in the interview or Forms Mode.

Black

The program entered this data or calculated this amount.

Red

This data has either been overridden or is invalid (for example, a ZIP code that doesn't exist).

Red italics

You marked this amount as estimated.

Black italics

The program calculated this amount from an amount you marked as estimated.

Purple

This information has supporting details.

Aquamarine

This data was transferred over from last year.

Green

This data was imported from Quicken or QuickBooks.

Yellow fields (Windows)

Yellow fields allow user input. Anything you enter here shows up in blue.

 

Level 15
Dec 23, 2021 4:51:39 PM

You ok?  You understand?  If you bought the program download online that is not the same as using the online web browser version of Turbo Tax.   I said Desktop CD/Download.   Meaning whichever way you installed the program, from a CD or from a download.  

There is also Turbo Tax Online browser version where you go online and log into an account each time.  It is different than the program you install on your computer.   

Level 2
Dec 23, 2021 5:08:31 PM

Yes I get it. Thanks

Level 2
Dec 23, 2021 5:09:24 PM

Ok Thanks. Ill work on it.