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rbergman
New Member

I used half of my IRA distribution to pay for 2015 taxes. is that deductible?

I toke out $10,000 in my Retirement Account to pay a tax bill last year that was around $6500.00
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Accepted Solutions
AnnaB
New Member

I used half of my IRA distribution to pay for 2015 taxes. is that deductible?

No, that is not an exception to taxing a retirement account distribution.  Federal taxes are never deductible on your Federal return.

If it was for state taxes, then it can be reported as an itemized deduction.

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4 Replies
AnnaB
New Member

I used half of my IRA distribution to pay for 2015 taxes. is that deductible?

No, that is not an exception to taxing a retirement account distribution.  Federal taxes are never deductible on your Federal return.

If it was for state taxes, then it can be reported as an itemized deduction.

I used half of my IRA distribution to pay for 2015 taxes. is that deductible?

You should get a 1099R for the distribution.  It will be taxable and a 10% Early Withdrawal Penalty if you were under 59 1/2.  Paying taxes is not an exception to the penalty.  

You can just type 1099R into the search box at the top of your return, then find and it will give you a Jump To link to go right to it.

OR
Enter a 1099R under
Federal Taxes Tab
Wages & Income
Choose Jump to Full List -or I'll choose what I work on,

Then scroll way down to Retirement Plans and Social Security,
Then IRA, 401(k), Pension Plans (1099R) - click Start or Update

Pick the right kind of 1099R you have and on the same screen be sure to pick which person it is for if you are filing a Joint return.

After you enter the 1099R be sure to answer all the follow up questions on the next screens to determine how much is taxable or not. Go all the way to the end of the section. You have to enter it from the 1099R because there are codes on it you need to enter properly.

I used half of my IRA distribution to pay for 2015 taxes. is that deductible?

Federal taxes paid are not deductible.

I used half of my IRA distribution to pay for 2015 taxes. is that deductible?

Some states let you deduct them on your State return.

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