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TAXPAYER RECEIVED A DISTRIBUTION OF $78,000-HARDSHIP DISTRIBUTION

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Level 1

TAXPAYER RECEIVED $78,000 FOR A HARDSHIP DISTRIBUTION.

AN EARLY DISTRIBUTION.

THEY TOOK OUT $7,800 FOR FEDERAL WITHHOLDING TAXES

WHEN PREPARING THE RETURN PRO SERIES DID NOT POST THE 

10% PENALTY.

WHY?

 

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3 Replies 3
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Level 15
Level 15

How old are they?  Whats the code in Box 7 of the 1099R?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 15

@mb70 wrote:

TAXPAYER RECEIVED $78,000 FOR A HARDSHIP DISTRIBUTION.

AN EARLY DISTRIBUTION.

THEY TOOK OUT $7,800 FOR FEDERAL WITHHOLDING TAXES

WHEN PREPARING THE RETURN PRO SERIES I DID NOT POST THE 

10% PENALTY.

WHY? - Because you did not understand all of the input for the return. 

Stay tuned and someone will give you really good hints. 


 


ex-AllStar
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Level 11
Level 11

It probably is subject to the 10% penalty, but you need to answer @Just-Lisa-Now-  questions. Here is a link for you to research:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-hardship-distributi...

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