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chday56
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Taxes on Cash withdrawal from Retirement Savings for down payment on new home

I needed $100,000.00 for a down payment on my new home.  I withdrew $125,000.00 from my retirement savings to cover the down payment as well as the taxes on the withdrawal.  Now TurboTax is showing that I still owe over $8,000.00 in taxes because of the withdrawal.  Is there a place in the deductions that I can get credit for the down payment to lower the taxes owed?

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Taxes on Cash withdrawal from Retirement Savings for down payment on new home

You can withdraw up to $10,000 from an IRA for a home purchase and be exempt from the 10% penalty for early withdrawal, if you qualify as a "first time home buyer".  (In fact "first time" in this case means that you did not own or co-own the home you lived in, for at least 2 years prior to the purchase of the home you want to use to qualify for the exclusion.

 

This exemption is not available for other retirement accounts like 401(k) and other qualified plans, only IRAs.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

 

This would be an option when entering the 1099-R, if it was an IRA, when the program asks "what did you do with the money."

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