I took out 8K from my IRA for medical expenses. I believe it should be exempt from taxes or added to income, correct?

Forum|Forum|1 year ago
January 30, 2025
2 replies
0 views

No text available

Best answer by dmertz

The distribution is not exempt from income tax even if it is exempt from the 10% early distribution penalty. Separately, you might be eligible for a medical-expense deduction on Schedule A, but this deduction is separate from the IRA distribution.

Vanessa A

It depends. The amount that is exempt from the penalty is the amount that is over 7.5% of your AGI. This means if you have an Adjusted Gross Income of $50,000, then the amount you paid OVER $3,750 would be exempt from the penalty. If you paid $8,000 total for the medical bills then you would still have to pay a penalty on the first $3,750 (if your AGI was $50,000) and the rest would be exempt from the penalty.

After entering your 1099-R into TurboTax, continue through the questions and TurboTax will help you get the exemption if you qualify.

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

dmertzAnswer

Employee