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New Member
posted Apr 18, 2023 3:34:03 AM

I have a 1099-R but I used that money for a downpayment on my first home that I bought in 2022, how would I fill this out?

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1 Replies
Expert Alumni
Apr 18, 2023 4:08:16 AM

That depends, you will owe income tax on it regardless of how you use it, but you may be able to avoid the 10% penalty.

 

  • Normally, you must pay a 10% penalty on any IRA distributions you take before age 59½. 
  • If the 1099-R is from an IRA (There is a check box on the form), As long as you are a first-time homebuyer (i.e., you haven't owned a home in the last two years) and put the money toward “qualified acquisition costs,” you'll be exempt from the penalty.
  • If this is from a retirement account (like a 401-K) it is not exempt

See Section (F)   Internal Revenue Code Section 72(t)(2)(F)