Turbo Tax

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L1: Turbo TaxHi, can anyone tell me if theTurbo Tax Deluxe Federal + State can be used to doa Federal income tax return 1040usingthe SEPP? Specifically is there an IRS 5329 form includedfor theSEPPdistribution from an IRA as an exception to the penalty.?Thanks2009-02-12 00:56, By: Dave, IP: []
L2: Turbo TaxDave,I have used TurboTax for the past 3 years with my SEPP and it will include a 5329, but it doesn’t appear right when you enter the IRA withdrawal — the system will ask “MUCH” later in the process questions about the IRA withdrawal — says something like “so-and-so’s Form 1099-R shows thatshe/he received an early payment (distribution) from a retirement plan. Early distributions are subject to a 10% tax penalty” this is where you will enter the exception code, which in turn will generate the 5329.Also, I have only had to use the TurboTax BASIC versionto accomplish this, so unless you have purchased the deluxe version and you don’t have other income/expenses that require the deluxe version, you might be able to use the Basic version. If you are using the online system, you can start with the Basic and if you have other forms that the BASIC does not cover, you can upgrade to the DELUXE.As for the STATE part of TurboTax, I don’t know — I don’t use TurboTax for my state taxes.Hope this helps.meb242009-02-12 15:24, By: meb24, IP: []