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How do I apply my disability exemption to my 1099-r from my ira?

I took a withdrawal from my IRA. I am permanently and totally disabled. Fidelity withheld the 10% penalty and marked my 1099-R with no known exemptions even though I told them I was P&T. Turbo tax never asks about any exemptions. How do I add my P&T disabled exemption onto my Turbo Tax to show I don't/didn't owe that 10% penalty?
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1 Reply
MinhT1
Employee Tax Expert

How do I apply my disability exemption to my 1099-r from my ira?

If you are totally and permanently disabled, your early IRA distribution is exempted from the 10% penalty (but not from income tax).

 

Please read this TurboTax Help topic.

 

In TurboTax, please follow these steps:

  1. After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue 
  2. Follow the interview until you arrive at the page titled Let's See If We can Lower your Tax bill and click Continue
  3. Continue until you get to a page titled Did you use your IRA to pay for any of these expenses?
  4. Enter the amount of your distribution in the box next to Permanent Disability and click Continue
  5. Your early withdrawal penalty will be waived.

 

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