Using IRA for College Tuition Fees - Education Exception

Forum|Forum|4 years ago
January 26, 2022
1 reply
0 views

I would like to make sure that I can take the education exception from my IRA distribution and make sure that TurboTax will include Form 5936, as needed, for 2021 Taxes.

Hal_Al

Employee

The TurboTax (TT) interview can handle this. In will not come up in the first part of the 1099-R section. Just keep going. It comes up after the 1099-R, when TT sees that you may have a penalty. It will then ask about exceptions and prepare form 5329* to claim the exception.

The distribution will be taxed. It's only the 10% early distribution penalty that is waived.

*There is no form 5936

TheDarkSideAuthor

I have tried to get through the interview to give me the exception for education but it does not provide it as an option; therefore, the Form 5329 does not come up.

AmyC

Employee

On your form 1099-R, if you have a code 1 in Box 7 , then after you enter the 1099-R, it should say, based on your code, you have extra tax and we'll help you check for exceptions. Perhaps you have a code 2 which indicates the exception is already known and accounted for so you do not need the penalty form. If you have a form with a completely wrong code, you may need to have a corrected form issued.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"