I'm trying to answer this question: Did I use my IRA to pay for these expenses? I checked this box: ANOTHER REASON. I paid taxes owed for the prior yr. Is this okay?

[Coleen3]

Yes. Sometimes if you use the money for specific things such as higher education, you can exclude the penalty for early withdrawal.

[dmertz]

No.  Using the money to pay taxes is NOT an acceptable "other reason" for an exception the early-distribution penalty.

The only permissible "other reason" as an exception to the early-distribution penalty on a distribution from an IRA is if the Form 1099-R has code 1, code J or code S but the distribution was actually made after you had reached age 59½.