IRA

[mmorgal]

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

[xmasbaby0]

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.

[JohnB5677]

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.