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?
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?
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.
Click on "Search" on the top and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R
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"
After entering all Form 1099-Rs click "continue" on the "Review your 1099-R info" screen
Answer the question on the "Owned Any Roth IRA for Five Years?" screen
Continue through the questions
Any taxes withheld on Form 1099-R box 4 will be carried to line 25b of Form 1040.