topic I took out 8K from my IRA for medical expenses. I believe it should be exempt from taxes or added to income, correct? in Retirement tax questions

I took out 8K from my IRA for medical expenses. I believe it should be exempt from taxes or added to income, correct?

hogandominique69 — Wed, 28 Jan 2026 06:11:49 GMT

Re: I took out 8K from my IRA for medical expenses. I believe it should be exempt from taxes or a...

Vanessa A — Thu, 30 Jan 2025 15:15:09 GMT

It depends. The amount that is exempt from the penalty is the amount that is over 7.5% of your AGI. This means if you have an Adjusted Gross Income of $50,000, then the amount you paid OVER $3,750 would be exempt from the penalty. If you paid $8,000 total for the medical bills then you would still have to pay a penalty on the first $3,750 (if your AGI was $50,000) and the rest would be exempt from the penalty.

After entering your 1099-R into TurboTax, continue through the questions and TurboTax will help you get the exemption if you qualify.

Re: I took out 8K from my IRA for medical expenses. I believe it should be exempt from taxes or added to income, correct?

dmertz — Thu, 30 Jan 2025 15:48:54 GMT

The distribution is not exempt from income tax even if it is exempt from the 10% early distribution penalty. Separately, you might be eligible for a medical-expense deduction on Schedule A, but this deduction is separate from the IRA distribution.