IRS website for Form 982 Reduction of Tax Attributes Due to Discharge of
Indebtedness (and Section 1082 Basis Adjustment) - https://www.irs.gov/pub/irs-pdf/f982.pdf
Are you insolvent? See this IRS website for information - https://www.irs.gov/uac/what-if-i-am-insolvent
See this TurboTax support FAQ for a Form 982 - https://ttlc.intuit.com/questions/1899897-what-is-form-982
If not, then you are not eligible to use Form 982.
The purchase of a personal residence, not used as a rental or in a business, is not entered on a tax return.
A withdrawal from a 401(k) tax deferred retirement account is not eligible for the exception to the 10% early withdrawal penalty for a first time home purchase. That exception is only if the withdrawal was from an IRA and then only the first $10,000 is exempt from the penalty. The withdrawal from the 401(k) is entered on your tax return as ordinary income and taxed at your current tax rate. If you were under the age of 59 1/2 or not separated from the service of your employer and under the age of 55 then there will be a 10% early withdrawal penalty assessed and entered on your tax return as a tax liability.
To enter a form 1099-R -
- Click on Federal Taxes (Personal using Home and Business)
- Click on Wages and Income (Personal Income using Home and Business)
- Click on I'll choose what I work on (if shown)
- Scroll down to Retirement Plans and Social Security
- On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
Or enter 1099 r in the Search box located in the upper right of the program screen. Click on Jump to 1099 r
