cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Where do I list the amount of IRA early distribution I used for Medical Insurance premiums while unemployed?

I have seen that I can pay for the medical insurance premiums but cannot find the place in Turbo Tax to enter the amount of the 1099-R distribution that was used for these premiums.

1 Reply
Level 1

Where do I list the amount of IRA early distribution I used for Medical Insurance premiums while unemployed?

To enter your IRA penalty Health Insurance premiums while unemployed exception:

  • Type 1099-r in the find box and click find.
  • Click on Jump to 1099-r.
  • Continue with the onscreen interview. 
  • After your 1099-R IRA distribution is entered, continue until you get to the Let's See If We Can Lower Your Tax Bill screen, click Continue.
  • On the Did you use your IRA to pay for any of these expenses? screen, scroll down to Health Insurance premiums while unemployed and enter your amount.
  • The amount will appear on Form 5329.
  • The penalty will be waived but the distribution will be added to your income.

Unless you qualify for an exception, you’ll pay a 10% additional tax penalty on the taxable amount of early distributions from an IRA (traditional or Roth) before reaching age 59 1/2.

There are exceptions to the 10% tax penalty for early distributions:

  • Death, or total and permanent disability
  • Series of substantially equal periodic payments based on life expectancy
  • Qualified first-time homebuyer distributions up to $10,000
  • Qualified higher education expenses
  • Certain medical insurance premiums paid while unemployed
  • Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
  • IRS levy
  • Certain distributions to qualified military reservists called to active duty

Once you enter the distribution information from your 1099-R form, we'll help you check for any exceptions that could reduce the tax.