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IRA distribution for medical expense, how is this credit applied?

 
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IRA distribution for medical expense, how is this credit applied?

If your Form 1099-R has a code of 1 in box 7 and you have entered the Form 1099-R.  You will go through several screens after entering the 1099-R.  One of the last screens will be labeled These Situations May Lower Your Tax Bill.  Enter the amount of your medical expenses, if applicable, in the box labeled - Medical Expenses (in excess of 7.5% of AGI)

TomK2023
Expert Alumni

IRA distribution for medical expense, how is this credit applied?

Your 1099-R should show Code 1 in Box 7 - Early distribution (except Roth), no known exception.

 

You can avoid an early withdrawal penalty if you use the funds to pay unreimbursed medical expenses that are more than 7.5% of your adjusted gross income (AGI).

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IRA distribution for medical expense, how is this credit applied?

Thank you all for your responses.  My question has been answered.

 

James

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