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February 5, 2025
Question

Will your system give me all the necessary options to receive all credits that may be available since I paid taxes on my IRA money to buy my first home?

  • February 5, 2025
  • 1 reply
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Can I speak to a live person.

    1 reply

    February 6, 2025

    Yes, if you qualify to be a First time home buyer then you don't have to pay the 10% early withdrawal penalty (up to $10,000).  You would enter it under "First home purchase (up to $10,000)" on the "Did you use your IRA to pay for any of these expenses?" screen. After entering all Form 1099-R click continue until your get the "Did you use your IRA to pay for any of these expenses?" screen.

     

    Also, if your distribution was from a Roth IRA and if you had your Roth IRA for 5 years or more then you can exclude up to $10,000 of your distribution from your taxable income when buying your first home (IRS). Please note, you can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free

     

    1. Click on "Search" on the top and type “1099-R”
    2. Click on “Jump to 1099-R” and enter your 1099-R
    3. Continue until "Did you use the money you withdrew to buy your first home?" and enter up to $10,000 under "this money was used to buy a home"
    4. After entering all Form 1099-Rs click "continue" on the "Review your 1099-R info" screen
    5. Answer the question on the "Owned Any Roth IRA for Five Years?" screen
    6. Continue through the questions

    Any taxes withheld on Form 1099-R box 4 will be carried to line 25b of Form 1040.

     

    Please see What's the TurboTax phone number? and How do I get TurboTax Live? - TurboTax Support - Intuit for additional information.

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