If you qualify for one of the exceptions, you still have...

Can you please tell me why my "federal tax due" went up by over $3k when I entered my 1099-R early withdrawal due to health emergency - I was told it was exempted.

Thank you

posted

If you qualify for one of the exceptions, you still have to report your withdrawal as income, but you don't have to pay the 10% additional tax penalty. Did you go through the interview on the 1099R completely to claim it as an exception? If so, the amount of the withdrawal becomes income in the current year (basically you had put the money in pretax and now withdrawing it so you must pay tax on the income). You should not be charged the 10% penalty amount though.

I hope this was helpful.

I am not a TT employee.

All the best in your taxes and health issues.

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