I withdrew $20,000.00, for a mortgage, which was deposited within 2 weeks. How do I use form 5498 to make sure I'm not taxed on this amount?

[AmandaR1 · Accepted solution]

You do not enter form 5498, but you do need to enter Form 1099-R.  

Form 5498 is required by the financial firm to the IRS and you just receive a copy.  You should receive a form 1099-R from your financial firm. When you enter it and answer the questions that follow, you'll be able to report your exception for early withdrawal because of purchasing a home. 

If you haven't received this form, check with your financial firm that holds your retirement plan. You may also be able to access this form from within your online account. 

[wilcleland]

There didn't seem to be a place to enter the $20,000.00 difference