How do I delete a blank form 5329 from my tax return?

[kbernstein]

It was generated when the Feb. 20 update came out.  When I print out my return, there are no numbers on the Form 5329, but when I look in the forms view in TT, there are the numbers related to my RMD on the worksheet which I think show that I paid the correct amount so there is no penalty.  But I am not comfortable submitting this to the IRS.  

[BillM223]

If you e-file, your tax data is in an XML format (ask a computer-nerd friend) and is not a copy of your printed forms. Based on what you said, I would believe that the XML data packet for your return is correct; it's the print software that goofed up.

If you can see the numbers on the 5329 in Forms mode, I suggest you get the blank 5329 in your printed tax return, and manually enter the numbers for your own records.

Oh, and you should be able to file.

[mshearn]

Problem:  TurboTax Deluxe desktop generates a Form 5329-T for payments from a NONQUALIFIED annuity that I purchased and annuitized in 2023. (There was no Form 5329 in 2023 TurboTax Deluxe desktop.)  Now in 2024 TurboTax Deluxe desktop, Form 5329-T (Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts) is created and shows pre-populated exception 12 ("distribution incorrectly indicated as early distribution...Include on line 2 the amount you received when you were are 59 1/2 or older.")  The amount on line 2 is the GROSS distribution in 2024, not the TAXABLE AMOUNT shown on line 2 in Form 1099-R from the insurance company that sold me the annuity.  The 1099-R form shows 7D in line 7 distribution code ("annuity payments from nonqualified annuities").   (The TurboTax forms library for my 2024 1040-SR  shows Form 5329-T with the GROSS distribution amount and only exception 12).  

1. Why is Form 5329-T even generated by TurboTax (possibly a software problem) since the 2024 distributions (a) were regular monthly payments (exception 2 should apply-"distributions made as part of a series of substantially equal periodic payments", (b) were NOT early distributions, and (c) the nonqualified annuity is not a "tax-favored retirement plan?  

2. Can Form 5329-T be deleted and not filed with Form 1040-SR with IRS either electronically or by mail?

3. IRS instructions for Form 5329 indicate code 99 ("enter this exception if more than one exception applies") but TurboTax does not allow me to change the pre-populated cod 12 if more than one exception applies, i.e., Exception 02-"substantially equal periodic payments" and Exception 12-"distributions incorrectly indicated as early distributions).

[MonikaK1]

Revisit the Form 1099-R entry section. It provides two Box 7 entry fields, so you can enter both 7 and D. When you finish the entries and get to the screen, "Your 1099-R Entries... Here's what we have so far", be sure to click Continue so that you can answer all the follow-up questions that enable TurboTax to determine whether the Form 5329 is needed.

You can delete a form in TurboTax Desktop by bringing up the form in Forms Mode and clicking Delete Form where it appears, normally at the bottom of the form screen.

Form 5329 is automatically generated when TurboTax determines that the additional tax is due. If after correcting any entries that generated it, the form still appears but with no information, it can be deleted.

In the case of an early withdrawal, you will pay regular income tax on the distribution at your applicable tax rate, plus an additional 10% "penalty" tax for the early withdrawal. TurboTax correctly calculates this for you.

Please see this TurboTax tips article regarding early withdrawals.

Please see this TurboTax help article regarding exceptions to the penalty.