No, you don't enter this information as an itemized deduction. Instead, you'll indicate what you did with the IRA distribution in the 1099-R section of TurboTax.
Distributions from a traditional IRA are taxable. Early distributions are subject to an additional 10% tax unless an exception applies. There is an exception to the early withdrawal penalty when you use the distribution from an IRA for qualified higher education expenses. Your financial institution should have sent you a 1099-R to report your IRA distribution. If it was an early distribution, box 7 will have code 1.
When you enter an early distribution and continue through the tax interview, TurboTax will ask questions to see if you qualify for an exception to the extra 10% penalty. In your case, you'll be able to indicate that you used some of your distribution to pay for your daughter's higher education expenses.
To enter your IRA distribution in TurboTax:
- Continue your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.)
- Click Tax Tools (lower left side of your screen).
- Select Tools.
- In the pop-up window, select Topic Search.
- In the I'm looking for: box, type 1099-r.
- In the results box, highlight 1099-r, then click GO.
- Follow the onscreen instructions. After you enter the 1099-R and answer several questions, TurboTax will display Your 1099-R Entries. (Click the first screenshot below for reference.) Click Continue.
- Again, continue through the interview. You'll reach a screen that says Let's see if we can reduce your early withdrawal penalty. (Click the second screenshot below.) Click Continue.
- Next TurboTax asks Did you use your IRA to pay for any of these expenses? (Click the third screenshot below.) Enter the portion of the IRA distribution you used to pay your daughter's higher education expenses and click Continue.
- TurboTax will calculate your tax savings. (Click the fourth screenshot below.)
Note: If using the TurboTax CD/Download software, you'll use the Find function and the "Jump to" link (instead of "Tax Tools") to search for the topic.
Where do I enter my 1099-R? https://ttlc.intuit.com/replies/4194737
[Edited 04.03.2018 I 11:53AM PDT]
