turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

therese12
New Member

Does turbo tax know how to not deduct the 10% of early withdrawal if you turned 59 and a half in the middle of the year

 
2 Replies

Does turbo tax know how to not deduct the 10% of early withdrawal if you turned 59 and a half in the middle of the year

This is one of the reasons TurboTax needs your birth date.  However, if the early withdrawal penalty is calculated, be certain you have answered all the followup questions to your 1099-R withdrawal - you may have to "manually" claim it if it happens in the year you turn 59-1/2.

Please see our TurboTax FAQ below for more information.

https://ttlc.intuit.com/replies/3301632

dmertz
Level 15

Does turbo tax know how to not deduct the 10% of early withdrawal if you turned 59 and a half in the middle of the year

TurboTax goes by the code in box 7 of the Form 1099-R.  Code 1 or code J indicates that the payer believes that the distribution was made before you reached age 59½ and is subject to an early distribution penalty.

If the payer mistakenly used code 1 or code J for a distribution that actually occurred after you had reached age 59½, you can claim the taxable amount of that distribution as an Other reason exception to the early-distribution penalty.

Manage cookies