Is there a turbo tax CPA that can change my 2019 1...
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debe1964
Level 1

Is there a turbo tax CPA that can change my 2019 1099-R to non taxable since my husband is permanently disabled?

 
3 Replies
ColeenD3
Employee Tax Expert

Is there a turbo tax CPA that can change my 2019 1099-R to non taxable since my husband is permanently disabled?

No one has the power to make something that is taxable be nontaxable. What is the code on your 1099-R? When did he become disabled?

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debe1964
Level 1

Is there a turbo tax CPA that can change my 2019 1099-R to non taxable since my husband is permanently disabled?

2014 but got approved in 2019.  the 1099 R is from my work 401K and we bought a house and used that for the main reason to withdraw the $22,000 from the 401k.  i turned 55 in Sept of that year and it came as "taxable"   .   Also because he hadnt been working for 5 yrs, BECAUSE OF DISABILITY, we needed to borrow that money.  It shouldn't be taxable but they say we need to have a CPA change the 1099-R to have that box checked and send to the IRS.  Wondering if Turbo Tax has a CPA that can do this?

LenaH
Employee Tax Expert

Is there a turbo tax CPA that can change my 2019 1099-R to non taxable since my husband is permanently disabled?

No. The only one that can change your 1099-R is the financial institution that issued it to you. Unless you qualify for an exception, you’ll pay a 10% additional tax penalty on the taxable amount of early distributions from your retirement account before reaching age 59 1/2.

 

There are exceptions to the 10% tax penalty for early distributions:

  • Death or total and permanent disability (you must be totally and permanently disabled)
  • Series of substantially equal periodic payments based on life expectancy
  • Qualified first-time homebuyer distributions up to $10,000
  • Qualified higher-education expenses
  • Certain medical insurance premiums paid while unemployed
  • Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
  • IRS levy
  • Certain distributions to qualified military reservists called to active duty
  • COVID-19 coronavirus-related distributions of up to $100,000 from January 1 to December 30, 2020

Once you enter the distribution information from your 1099-R form, TurboTax will help you check for any exceptions that could reduce the tax.

 

Topic No. 557 Additional Tax on Early Distributions from Traditional and Roth IRAs

 

Retirement Topics - Exceptions to Tax on Early Distributions

 

@debe1964

 

 

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