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jwizzy19
New Member

I have to account for a 10% penalty for a non-qualified withdrawal from a Coverdell account. Where do I do this?

 
3 Replies
KrisD15
Expert Alumni

I have to account for a 10% penalty for a non-qualified withdrawal from a Coverdell account. Where do I do this?

You do this by entering the 1099-Q

 

Click Federal

Click Deductions & Credits

Scroll down to Education and Click Show More

Scroll down and Click 1099-Q

 

Be aware that Congress just made some changes to the treatment of non-qualified distributions, so the program MIGHT have you wait for updates before filing. 

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jwizzy19
New Member

I have to account for a 10% penalty for a non-qualified withdrawal from a Coverdell account. Where do I do this?

Thanks.   I had found that area and entered the figures for the earnings that are to be taxed, but where in the software do I account for the 10% penalty on those earnings that also has to be added?

KrisD15
Expert Alumni

I have to account for a 10% penalty for a non-qualified withdrawal from a Coverdell account. Where do I do this?

You enter the 1099-Q once, the software calculates the tax and/or penalty tax if applicable. 

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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