Do I need to pay taxes if I returned all money withdrawn within 60 days from an IRA towards downpayment of first home purchase?

[ryan-kowlessar]

I received a 1099-R.

[VolvoGirl]

No unless you didn’t replace any withholding that might have been taken out.  Then the withholding becomes a distribution.   After you enter the 1099R it will ask what you did with it.  

Pick I moved it to another retirement account even if you put it back into the same account.

Oh what code is in box 7?

[ryan-kowlessar]

1

[VolvoGirl]

Code 1?  That is for an early distribution if you are under 59 1/2.  There would be an 10% Early Withdrawal Penalty on the taxable amount.  There is an exception for buying a house.  

You can exempt up 10,000 for the penalty for a new home purchase.  And that is for each spouse's withdrawal.