topic Re: IRA in Get your taxes done using TurboTax

IRA

Coach1122 — Fri, 14 Feb 2020 13:59:26 GMT

First time working with Turbo Tax.

Program trying to charge me 10% of IRA. I'm 66 years old. Help! What do I do?

Re: IRA

DavidS127 — Fri, 14 Feb 2020 16:06:48 GMT

Unless your IRA has engaged in a prohibited transactions described at this IRS link you should not be paying the 10% additional tax.

Check the distribution code in box 7 of the 1099-R, if it is Code 1 (early distribution) instead of Code 7 (normal distribution) you should ask for a corrected 1099-R. Also, make sure you entered the correct box 7 code in TurboTax and answered all the questions in the interview section.

Also note that the regular tax rate on the first few thousand of taxable income is 10%. If you were in that tax bracket at the time the Form 1099-R was entered, your regular tax would have increased by 10% of the distribution amount.

Re: IRA

VolvoGirl — Fri, 14 Feb 2020 16:14:27 GMT

Did you enter a 1099R for a distribution? Are you seeing an extra 10% Early Withdrawal Penalty on your tax return? Check your date of birth under My Info.

Are you married? Is your spouse under 59 1/2? Maybe it assigned the 1099R to her. When you enter the 1099R you have to pick which spouse on the first screen.