topic If i have two 1099R forms and a penalty for early withdrawal, can i use the free version or do I need deluxe? in Retirement tax questions

If i have two 1099R forms and a penalty for early withdrawal, can i use the free version or do I need deluxe?

kairiluvsorahear — Mon, 09 Mar 2026 04:56:54 GMT

I keep seeing varied answers online. i wish you didn't have to clear everything if you need to switch versions.

Re: If i have two 1099R forms and a penalty for early withdrawal, can i use the free version or d...

MarilynG1 — Fri, 25 Feb 2022 20:37:14 GMT

You don't have to clear everything if you switch versions.

If you start off in the Free Edition, TurboTax will tell you if you need to upgrade (based on forms needed for your return).

If you upgrade, the needed forms are added to your return. Not so bad.

Click this link for more info on Do I Need to Upgrade?

In your case, Form 5329, Penalty for Early Withdrawal, may be needed. Be sure to see if you qualify for a Penalty Exception.

Re: If i have two 1099R forms and a penalty for early withdrawal, can i use the free version or d...

kairiluvsorahear — Fri, 25 Feb 2022 21:29:15 GMT

I started out with deluxe because someone told me that was what I needed for this situation, but since then I have been told like five different things. :(

So I have completely filled everything out to the end, but of course if I didn't need deluxe because of this situation, I would like to have the free version.

So, if i don't qualify for Penalty Exception and need that form, 5329, do I need deluxe? I just don't want to delete everything I have done, go back to the free version, fill everything out, only to discover I did need deluxe.

Sorry, thank you for your time!

Re: If i have two 1099R forms and a penalty for early withdrawal, can i use the free version or d...

DianeW777 — Fri, 25 Feb 2022 21:50:43 GMT

Yes. If you need to pay the penalty for early withdrawal you must use TurboTax Deluxe Online version or Any version of TurboTax CD/Download.

Forms Available in TurboTax Deluxe Online (Scroll the list of forms available in this version)

If your Form 1099-R does have a code 1, in box 7 then the free version will not work for you if you are younger than 59 1/2 years of age and you need to use an exception to the penalty.

Can I downgrade to a lower priced version of TurboTax?