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Help I qualified for tax free early withdrawal but it’s adding it to my taxable income and tax due. Please help?

Qualification of eligibility is from Turbo Tax not me
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1 Reply
DanaB27
Expert Alumni

Help I qualified for tax free early withdrawal but it’s adding it to my taxable income and tax due. Please help?

Please be aware the exception only applies to the 10% early withdrawal penalty. The distribution will still be taxable income unless it was an after-tax contribution.

 

If it was a Roth IRA distribution then please make sure to enter your net contributions in the follow-up questions.  You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top and type “1099-R” 
  3. Click on “Jump to 1099-R” and enter all your 1099-Rs
  4. Click "Continue" on the "Review your 1099-R info" screen
  5. Answer all the questions and make sure you enter the net contributions prior to 2022 on the "Enter Prior Year Roth IRA Contributions" screen
  6. Answer the remaining question.
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