L1: Turbo Tax/SEPPMy 1099R box 7 is coded 1. I need to correctly change this to a 2 in Turbo Tax Premier. There are two places I could change it, however, I am not sure which place. I have tried both, finished all taxes, went to review and do not see a form 5329 added to my 1040. Can someone please tell me the correct place to do this change? One place, I can physically change a 1 to a 2 or I can go to Additional Tax Payments and add my $$ into the EPP box. I have tried both. Tax return amount is the same but again, trying either place does not show form 5329 added. I have spent minimum 3 hours with TT without any luck. I just want to do this correctly and not be audited!! Thank you so much.
2014-02-09 17:50, By: CAH, IP: [22.214.171.124]
L2: Turbo Tax/SEPPI did this a few years back so I don’t remember the steps exactly, but do not physically change it on the 1099R input. Near the end of the interviewing processing of TurboTax, they will ask questions about whether the amount entered for the 1099R is taxable. Answer the questions and eventually it will ask for the code for the Form 5329, that’s where you enter the 02 code.
BTW, I did not use the Premiere version when I did it in 2011. I used the Deluxe version, but I would think the Premiere works the same way.
Hope that helps.2014-02-09 20:17, By: meb24, IP: [126.96.36.199]
L3: Turbo Tax/SEPPIf the 1099-R had been coded with a “2” that it was not subject to the 10% penalty because a known exception applies, then you would not need to create a 5329 form. It is extremely rare for any 1099-R to have a “2” code.
Since the 1099-R was coded with a “1” indicating an early distribution because there is no known exception (which is now the universal code on form 1099-R), and therefore possibly subject to the 10% penalty, then you have to prepare the 5329 form to tell the IRS that the distribution was from a SEPP 72-T, and therefore not subject to the 10% penalty. The applicable code on form 5329 is “02”.2014-02-09 20:55, By: dlzallestaxes, IP: [188.8.131.52]
L3: Turbo Tax/SEPPThank you both for your quick reply. I also did Deluxe in 2011. This year I was offered Premier (for free), thought I would try it and found out…..you can not go back! This is offered through Vanguard. Anyway, each year, it seems that I have to “hunt” around for the correct place.Turbo Tax (TT), suggestedI will go to Other Tax situations, Additional Tax Payment, update, Extra Tax on Early Retirement Withdrawn….then I think (help me here if you can), I will add my income on the EPP line. This last choice (EPP) is one that I am not sure of but all the rest Turbo Tax recommended. Again, when I have “played” with this option, I was never prompted to add the “2” and I did not see the form 5329 in my review of papers.
Again, I as so sorry to both you on this site, however TT is NOT helpful and I feel desperate. Thanks again to both of you!!2014-02-09 21:37, By: Cah, IP: [184.108.40.206]
L4: Turbo Tax/SEPPThere may be an option to manually ADDForm 5329 & that may prompt the questions about additional tax on the withdrawal.
Another option might be to removed the 1099R info & thenre-enter it, hopefully prompting the system to ask the questions to get you to the Form 5329.
If you don’t really need the Premiere version, and feel comfortable with the Deluxe, I think you can call TurboTax to downgrade, especially if they are both FREE.
Note: Was just reading info in TT community about manually Adding Forms — This may NOT be a good idea according to some folks. After manually Adding a form they were unable to efile due to overriding the system, so it maynot be a good idea to manually add the form if you are planning on efiling.2014-02-09 22:05, By: meb24, IP: [220.127.116.11]
L5: Turbo Tax/SEPPI think that’s a perfect reason not to e-file. There is no IRS requirement that a taxpayer must e-file, and even if a practitioner normally e-files, he or a taxpayer can “opt-out” if the software cannot prepare the tax return properly, or if the taxpayer tells the practitioner not to e-file the return.2014-02-09 22:32, By: dlzallestaxes, IP: [18.104.22.168]
L2: Turbo Tax/SEPPCAH… You may want to call the TurboTax help line and ask them. It is reallly a software issue.2014-02-09 22:23, By: Gfw, IP: [22.214.171.124]
L3: Turbo Tax/SEPPI used Turbotax deluxe and I downloaded my 2 1099’s from fidelity as I had a withdrawl for Medical expense from one IRA and my SEPP plan withdrawl from another (SEPP designated) IRA. at some point in the TT interview it asked me if I had exceptions and I indicate the medical expense withdrawl code and the SEPP withdrawl code. It did generate a 5329 form with a combined total of my medical expense and SEPP withdrawls and a exception code of ’12’ (more than one exception applies) I’m justsuprised it never indicates exactly what exceptions they are (2 and5)2014-02-09 23:21, By: Bob_85364, IP: [126.96.36.199]
L4: Turbo Tax/SEPPEven though the instructions do not require it, I always include an explanation of the 2 exceptions and amounts with the tax return, in case someone at the IRS actually will read it.2014-02-09 23:24, By: dlzallestaxes, IP: [188.8.131.52]
L5: Turbo Tax/SEPPGood idea DLZ… It does concern me that I’m filing a form that does notspecifically indicate what amounts I’m taking for what exception. Seems to me that would raise an immediate red flag.2014-02-09 23:36, By: bob_85364, IP: [184.108.40.206]
L6: Turbo Tax/SEPPI just did this last week, and had a similar issue. It asked if there was an exception, and i clicked the SEPP box, but couldn’t see form 5329. Turns out it was there when I printed, so I sunmitted it and was accepted. Try and print it!2014-02-10 16:27, By: Scott, IP: [220.127.116.11]