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
Related Resources
Form 8960 is used to calculate your Net Investment Income tax. Rely on the experts at H&R Block to understand who needs to file Form 8960 and what it covers.
Learn whether you need to amend your return if you received form 1098-T after filing with advice from the tax experts at H&R Block.
Have you set up an IRS electronic funds transfer to pay your taxes and want to change the amount? Find out what you can do with help from H&R Block.
Learn about IRS direct debit installment agreements (DDIA), which can get you a lower user fee. Get the facts from the tax experts at H&R Block.
