Where is form 5329 for a First Time Home Buyer?

Question

The software was supposed to prompt me after I selected code 1 in box 7 of my 1099-R but it didn't. I am at the end of my taxes and I still have not been able to fill this out. Can someone please point me in the right direction? Thanks!

JanaA · Answer

Hello Andrew7! When you enter a 1099-R with distribution code 1 in Box 7, the software should present a set of follow-up screens asking whether any exceptions apply to the 10% early withdrawal penalty. If you didn't see that prompt, it's possible the 1099-R entry wasn't fully completed before moving on. Here's what I'd suggest:

1. Go back to the 1099-R entry in the Income section and open that form.
 2. Work through all the entry fields to the end of the 1099-R screens.
 3. After completing the 1099-R, select to Continue and you will be taken through a series of follow-up screens. One of these will ask about exceptions to the early withdrawal penalty.
 4. On that screen, select the option for a qualified first-time home purchase (up to $10,000 lifetime limit). The software will then apply Form 5329 to claim the exception.

JMSSGV · Answer

Does this work? * For Early Distribution Penalty Exceptions:* Go to the Income menu and select Retirement Income (1099-R). * Enter your 1099-R details. * Continue through the screens until you reach the page asking, "Do any of these 10% penalty exceptions apply?". * Select the applicable exception (e.g., age 55 separation, disability, qualified higher education expenses).