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valeriecunningha
New Member

Why is it saying pension and annuity?

I withdrew from my retirement account because I was out of work sick a withdrew as of hardship. I think it's a mistake that on my taxes they put it on the pension and retirement line. I wasn't retired and wasn't getting any annuity. It didn't go into an ira or in any bank. It was used for medical bills and bills. Please help
1 Best answer

Accepted Solutions
IsabellaG
Expert Alumni

Why is it saying pension and annuity?

Any distribution from a retirement account is reported to the IRS on 1099-R, and you report it as retirement income. If you were under age 59 1/2, you will see a distribution code in Box 7 of your 1099-R corresponding to your situation. In your case, you may see distribution code 1.

Continue through the entire section for entering the 1099-R. You will reach the screen: Let's See If We Can Lower Your Tax Bill. 

See the screenshot below. On the screen These Situations May Lower Your Tax Bill.

 Distributions to the extent you have deductible medical expenses that exceed 10% of your adjusted gross income whether or not you itemize your deductions for the year are not subject to the penalty. You'll still pay tax on the distribution but would avoid the additional 10% penalty for early distributions.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
IsabellaG
Expert Alumni

Why is it saying pension and annuity?

Any distribution from a retirement account is reported to the IRS on 1099-R, and you report it as retirement income. If you were under age 59 1/2, you will see a distribution code in Box 7 of your 1099-R corresponding to your situation. In your case, you may see distribution code 1.

Continue through the entire section for entering the 1099-R. You will reach the screen: Let's See If We Can Lower Your Tax Bill. 

See the screenshot below. On the screen These Situations May Lower Your Tax Bill.

 Distributions to the extent you have deductible medical expenses that exceed 10% of your adjusted gross income whether or not you itemize your deductions for the year are not subject to the penalty. You'll still pay tax on the distribution but would avoid the additional 10% penalty for early distributions.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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