Click on Federal on the left side of the online program screen
Click on Other Tax Situations at the top of the screen
On Additional Tax Payments, click on Show More
On Extra Tax on Early Retirement Withdrawals, click on Start
Thank you! I took the steps you outlined and am landing on a page that is erroneously stating the following:
No Early Retirement Withdrawals There's no extra tax to pay because you took no withdrawals from a retirement account before retirement age. Learn More
This is after I already completed a 1099-R for this year where I declared the early withdrawal that necessitated Form 5329. Any idea how to navigate this?
@kelpaik wrote:
Thank you! I took the steps you outlined and am landing on a page that is erroneously stating the following:
No Early Retirement Withdrawals
There's no extra tax to pay because you took no withdrawals from a retirement account before retirement age. Learn More
This is after I already completed a 1099-R for this year where I declared the early withdrawal that necessitated Form 5329. Any idea how to navigate this?
Were you under age 59 1/2 when the distribution took place? Was the distribution from an IRA or from a pension or annuity?
When you entered the distribution from the retirement plan on the Form 1099-R, did you indicate that the distribution was from an IRA by checking the box labeled IRA/SEP/SIMPLE?
If it was an early withdrawal you should have been presented with a series of questions after completing the 1099-R where you would have been asked about exceptions to the 10% early withdrawal penalty.
Go back to the section for a Form 1099-R and check your entries.
Solved my own question above. Adding the resolution here for anyone else who may run into it:
I had to go back to the 1099-R form and change my answer to this question: Do any of these situations apply to you?
I had previously selected none of the above. Instead, I picked "I took out this money due to a qualified disaster". Then, when completing Form 5329, Turbo Tax allowed me to pick my "disaster" from a list of options that included everything the IRS considers a qualifying event.