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On a 1099-r form how do I indicated that I took it out for higher education?

Where do I note that the money I recieved from a 1099-r form that it was used for Higher Education?

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1 Reply
LindaA
Expert Alumni

On a 1099-r form how do I indicated that I took it out for higher education?

This will come up during the tax interview if the distribution was from an IRA (or SEP, SIMPLE IRA, or SARSEP plan). Using an early distribution from an IRA to pay for qualified higher education expenses may reduce or eliminate the additional 10% tax on an early withdrawal. This exception to the penalty is not available for early distributions from 401(k) or 403(b) plans.

When you enter the 1099-R for the early distribution from your IRA and continue through the interview, TurboTax will ask Did you use your IRA to pay for any of these expenses? One of the options is Higher education. (Click the screenshot below for reference.)

For more information, please see IRS Retirement Topics - Exceptions to Tax on Early Distributions.

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