1099-R ERISA SETTLEMENT FUND

[pstmart]

I have a 1099-R from a legal settlement, not directly from my retirement accounts. When I enter the 1099 for an amended return, TurboTax calculates a $600+ penalty for early withdrawal. That doesn't seem correct. How should I enter this 1099?

FYI:

Box 7 = 1

State and Federal taxes withheld.

IRA/SEP/SIMPLE = not checked

@1099-R 

@settlement

@erisa

Thanks!

Paul

[ThomasM125 · Accepted solution]

After your enter your Form 1099-R, you will come to a screen that says These situations may lower your tax bill, you need to check the last option Other to have your penalty removed.

[pstmart]

Thanks for the reply!

I don't see a screen for 'lower your tax bill' in the 1099 flow.

Flow:

1. Is the IRA/SEP/SIMPLE box on this 1099-R checked? (No)

2. How your taxes are looking so far

3. Do any of these situations apply to you? (None)

4. Tell us if you moved the money through a rollover or conversion (I didn't roll over or convert this money)

5. We found a few other questions ...

6. Annuity information, Periodic payments (No)

Done.

[pstmart]

Never mind, found it.

Thanks!