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I have to account for a 10% penalty for a non-qualified withdrawal from a Coverdell account. Where do I do this?
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posted
January 27, 2020
7:58 PM
last updated
January 27, 2020
7:58 PM
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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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January 27, 2020
8:22 PM
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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?
January 27, 2020
9:34 PM
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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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January 28, 2020
6:33 PM
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