I entered 1098-R info for hardship withdrawal. TT is asking to list the amounts of the withdrawal for medical expenses, death etc to figure the tax on it. But do I put the full amount or am I suppose to figure out how much of that amount is 7.5% above my AGI? PS this is not covid related at all.
First you must enter ALL of your 2020 income to get your 2020 AGI. Then calculate 7.5% of the AGI. Take that number and subtract it from your total medical expense - the result is the amount to enter.
But doesn't AGI change according to everything, including all credits and deductions? So wouldn't I have to go through the entire 1040 and get to the end to find my AGI? Do I leave this blank and then go back?
@elsherif1350 wrote:
But doesn't AGI change according to everything, including all credits and deductions? So wouldn't I have to go through the entire 1040 and get to the end to find my AGI? Do I leave this blank and then go back?
Yes it does which is why I said to enter everything else first. Do that last or you might have to do it again.