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JB0908
New Member

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

 
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8 Replies

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

Why do you think it should be corrected?
JB0908
New Member

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

Because I took less than $10k for a first time home purchase which is an exception to the early withdrawal penalty and 10% tax. The form is coded as early distribution - no exception.
DawnC0
Intuit Alumni

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

If you qualify for an exception to the penalty/tax on your 1099-R, you will be able to indicate that when you complete your return.  TurboTax will ask you about many possible exceptions to the tax, including 1st time home purchases.  

Enter the 1099-R as it is, and let TurboTax make the adjustment for you.

JB0908
New Member

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

I did that. It dropped my refund by half and upped my state tax owed to several hundred dollars.

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

From what you've indicated so far..the 1099-R was issued properly.
.....and then you entered the reason for the exception to the penalty during the followup questions after you entered your 1099-R (correct?)
BUT....

The distribution $$ are STILL added to all the other income on  your tax return as taxable  income...it just doesn't get hit with the "extra" 10% penalty.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
JB0908
New Member

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

Ok... that’s stinky but makes sense. That’s probably what it is... thank you!

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

The 1099-R is correct because the bank doesn't know what you used the money for (or, they aren't going to take your word for it because they can't audit you).  When you claim the exclusion in Turbotax, you are swearing that you qualify, the penalty goes away, but you are liable to prove you qualify if audited.
DawnC0
Intuit Alumni

What can I do if the bank that had my IRA refuses to issue a corrected 1099-R? I took a withdrawal for 1st home, but am being required to pay taxes?

Tax law waives the penalty (10%) on the withdrawal, but not on any ordinary tax that is owed.  

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