Skip to main content
April 14, 2024
Question

If the pension money taken out in 2023, is being used to buy my primary home in 2024, do I still need to pay taxes on it in 2023?

  • April 14, 2024
  • 1 reply
  • 0 views
The purchase process has taken longer than expected. It is now happening in 2024, but started in 2023.

1 reply

DoninGA
Employee
April 14, 2024

A withdrawal from a retirement plan is reported on your federal tax return as ordinary income regardless of the reason for the withdrawal.  If the withdrawal was from an IRA for a first time home purchase then the 10% early withdrawal penalty will be waived on the first $10,000 but the withdrawal is still reported as taxable income.

 

To enter, edit or delete a form 1099-R -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

 

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

 

On the screen Did you get a 1099-R in 2023? Click on Yes

On the next screen click on Continue

On the screen Let's import your tax info Click on Change how I enter my form

On the screen How do you want to add your 1099‑R? Click on Type it in myself

On the screen Who gave you a 1099-R? select the type of 1099-R you received and Continue