topic , I cashed out a Coverdell Education account. I am both contributor and recipient of the funds. Where do I show or enter the 10% penalty ? in Get your taxes done using TurboTax

, I cashed out a Coverdell Education account. I am both contributor and recipient of the funds. Where do I show or enter the 10% penalty ?

rhodey — Sat, 06 Mar 2021 22:49:28 GMT

Re: , I cashed out a Coverdell Education account. I am both contributor and recipient of the funds. Where do I show or enter the 10% penalty ?

mgarry3416 — Sat, 06 Mar 2021 22:58:30 GMT

You may not need to pay the 10% penalty based on your answers to questions. As you go through the questions for the Coverdell Ed account. there is one question is the payment a return of principle. Marked one way TT adds the 10% penalty, Marked another way no penalty.

Follow the questions in the interview and TT will determine the penalty amount for your situation

Re: , I cashed out a Coverdell Education account. I am both contributor and recipient of the fund...

KrisD15 — Sun, 07 Mar 2021 01:55:13 GMT

Enter the 1099-Q and answer the interview questions. Answer "NO' to "Was it used for education?"

The information on the 1099-Q will tell the TurboTax program how much tax to report.