☰
✕
Sign In

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
New Member
posted Jan 30, 2020 9:06:22 PM

First time home IRA withdrawal?

Traditional IRA, withdrew <10k for first home. Withheld 10% taxes upfront. When I'm asked how much of the withdrawal I spent on the purchase, is this the gross distribution from the 1099-R, or the net (minus the withheld tax amount)?

0 2 787
2 Replies
Level 15
Jan 31, 2020 8:09:03 AM

It's the amount of out-of pocket money (which includes any money from the IRA distribution) you spent to acquire the first home, up to a maximum of the gross amount of the distribution (1099-R box 1) or $10,000, whichever is less.  In your case the box 1 amount is less than $10,000.

Employee Tax Expert
Jan 31, 2020 8:15:03 AM

If you added money from your own funds to make up for the 10% that was withheld for the taxes, then enter the total amount of the distribution shown in box 1.

 

If you actually used a lesser amount, then enter that lesser amount.  Be aware that the difference between what you actually used and the amount distributed will incur the 10% early distribution penalty on your tax return.