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The 10% tax penalty for early withdrawal from your 401(k) is calculated by TurboTax and included in the amount of tax due or refund.
You just need to enter your form 1099-R correctly and answer the questionnaire about the form 1099-R in TurboTax.
The 10% tax penalty for early withdrawal from your 401(k) is calculated by TurboTax and included in the amount of tax due or refund.
You just need to enter your form 1099-R correctly and answer the questionnaire about the form 1099-R in TurboTax.
I know its a year later but all Turbo did this year was to advise the amount of the penalty. It did not include it in the amount of the IRS tax I owed.
Unless you indicated that you qualified for an exception for the early withdrawal penalty, TurboTax would create a Form 5329 to include the penalty on your tax return automatically. @RPS
Nobody at Intuit will talk to me, so I’ll take my 2022 tax forms to a CPA to correct an issue TurboTax caused and then sue Intuit to get restitution for any upcoming IRS penalties.
I took an early 401k distribution and entered the 1099-R form and it eventually gave me the screen message that my “extra tax bill would be $xxxxx”. Ok, that is fine and knew that was coming. However, after doing all the reviews and it saying everything was good, I found that TurboTax did not file the Form 5329 so it did not actually send in the early withdrawal penalty with my payment.
Now I have to deal with this BS. Never again Intuit! Never again!
You don't need form 5329 if you are only reporting the 10% Early Withdrawal Penalty. Didn't the additional tax show up on Schedule 2 line 8 which goes to 1040 line 23? See the line right above Part 1on 5329
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