1099-R

Forum|Forum|6 years ago
March 17, 2020
2 replies
10 views

my daughter is a college student who had a part time job that she received a 1099-R for. doing her taxes I realize that her pay is considered an early withdrawal from a retirement account and subject to early withdrawal penalties, is this correct? will this reduce the amount of her return? she made next to nothing last year.

macuser_22

Alumni - Champ

A 1099-R reports a distribution from a retirement account. Pay from a job is reported on a W-2 or 1099-MISC.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

xmasbaby0

Level 15

How long ago did she cash out the retirement money? She could have rolled it over to another account within 60 days. If it has been more than that--and sounds like it has since this is March---then she will pay 10% early withdrawal penalty on it and ordinary income tax in her tax bracket--if she has to pay any tax for her "next to nothing" income. Same thing happened to my college student niece whose taxes I prepare--but it ended up costing her about $22 which just reduced her refund amount.

She does have to enter the 1099R though-

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

Try using Free File for her return so she does not have to pay for filing:

Try Free File:

You qualify if your income was $36,000 or less, or $69,000 or less if active duty military, or if you qualify for Earned Income Credit

https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program

https://ttlc.intuit.com/questions/2026912-how-do-i-switch-to-turbotax-free-file-program

If you switch to Free File you must create a new account and new user ID.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**