topic IRA in Deductions & credits

IRA

mmorgal — Tue, 10 Feb 2026 11:09:45 GMT

I withdrew money from my retirement plan to put down on a house I purchased. Is any of that money tax deductible?

Re: IRA

xmasbaby0 — Tue, 20 Feb 2024 19:38:44 GMT

No, the money you took out of an IRA for a down payment is not deductible. If you took money from a traditional IRA before you turned 59 1/2 you get an exception to the 10% early withdrawal penalty. The money is still all taxable income. You will add the 1099R for that to your tax return.

To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.

Re: IRA

JohnB5677 — Tue, 20 Feb 2024 19:53:05 GMT

No, there is no deduction for the down payment on a home.

You will owe income tax on the entire withdrawal.
However, there is an additional 10% early withdrawal charge for people under the age of 59 1/2.
This penalty is waved for up to $10,000 if the money is used for the down payment on a first time homebuyer withdrawal.

Please see the IRS Publication Additional tax on early distributions from traditional and Roth IRAs in the Exceptions to the 10% additional tax section.