Where does TurboTax online give me the option to report that an early IRA withdrawal was for qualified higher education expenses?

[juliwilsonblack]

I don't see it among the check boxes of exceptions to the early withdrawal penalty, though it is listed as an exception in the sidebar description.

[DanaB27 · Accepted solution]

Please make sure you selected IRA on the "Identify the plan" screen. Then on the "These situations may lower your tax bill" screen it will see "Higher education expenses" as the the 6th box.

1. Login to your TurboTax Account 
2. Click on the "Search" on the top and type “1099-R” 
3. Click on “Jump to 1099-R”  and enter your 1099-R
4. Click "continue" after all 1099-R are entered and answer all the questions.
5. Continue until "Tell us which person may have qualified for a penalty exception" screen and select the edit symbol.
6. On the “Identify the plan” screen select “IRA”
7.  On the “These situations may lower your tax bill” screen enter the amount of higher education expenses.

Note, if you withdrew money from a 401k instead if an IRA then Higher Education isn't an exception. Please see IRS Exceptions to tax on early distributions for details.

[juliwilsonblack]

Thank you!