I know Form 5329 is the tax form used to calculate possibly IRS penalties and possibly request a penalty waiver. You may need this form in three situations:Early distributions from a tax-favored accountExcess contributions to a tax-favored accountFailing to take required minimum distributions.None of the above situations applies to my case. How can I indicate this when filing on Turbotax so that I don't have to upgrade to Deluxe?

TurboTax

File with experts
File your taxes
Experts at your fingertips

An expert helps with your taxes, or does them for you
TurboTax Expert Full Service

TurboTax Expert Assist

TurboTax Self-Employed
Prior year taxes
File myself
File myself
Do it yourself

We'll guide you step-by-step
TurboTax Do It Yourself

TurboTax Self-Employed

TurboTax Desktop
TurboTax Free

Activate your product

Prior year taxes
Business
Business
Business taxes

Get your T2 corporate return done right, your way
TurboTax Business

TurboTax Business Desktop
Tax situations
Tax situations
Tax situations

Find extra guidance for your big life moves
For investors

For 25 and younger

For self-employed

For new to Canada

For life changes
Resources
Resources
Resources

Explore tax tools, get tips, and read reviews
Personal income tax calculator

RRSP savings calculator

Learning hub

TurboTax support (FAQ)

TurboTax community
Pricing

Community

tmho

Question

I was required to upgrade due to Additional Tax on Excess Contributions or Deductions (Form 5329)

Forum|Forum|1 year ago
January 18, 2025
1 reply
0 views

I know Form 5329 is the tax form used to calculate possibly IRS penalties and possibly request a penalty waiver.

You may need this form in three situations:

Early distributions from a tax-favored account
Excess contributions to a tax-favored account
Failing to take required minimum distributions.

None of the above situations applies to my case. How can I indicate this when filing on Turbotax so that I don't have to upgrade to Deluxe?

TurboTax Free Edition Online

BillM223

Are you working in the Online product?

Note that Form 5329 is used to report additional taxes on:

IRAs,
Other qualified retirement plans,
Modified endowment contracts,
Coverdell ESAs,
QTPs,
Archer MSAs,
HSAs, or
ABLE accounts.

Note that some other situations require the 5329, like showing an exception to a penalty for an early distribution from a retirement account.

Unfortunately, since I assume that you are using the Online product and have not paid for it yet, you can't see the 5329. We have not seen here in Community other reports of the 5329 being added for no cause. The right answer to your question is to figure out what is triggering the 5329 and correcting that. We in the Community cannot see your private tax data.

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