We withdrew from an IRA for college expenses. However, the Form 1099-R, Box 7, shows Code 1, reporting no exception applies. Is it possible to get a refund of the amount withheld?
While an early-distribution penalty does apply when using an IRA to pay student loans, there is no penalty when IRA distributions are used to pay for current educational expenses.
Simply report the early-distribution amount from the IRA used for college expenses on Form 5329. Enter the amount on Line 2 and enter exception number “08.” Any withdrawals in excess of education expenses will be subject to the penalty
If you have a tax balance that you can't pay right away, consider your payment options with us. Get tax answers at H&R Block.
When does tax reform take effect? The new tax law passed in 2017, with most provisions going into effect in tax year 2018. Learn more with the experts at H&R Block.
Learn how to get an IRS tax transcript with the experts at H&R Block. You can order a tax transcript online or on the phone.
Learn more about the latest updates for 2019 tax withholding with H&R Block. Find out how your paycheck may be impacted by the new 2018 withholding tables.