1040 Form 5329 entering exceptions to the additional tax on distributions from Form 1099-R

[boadojre001]

Line 1 (Gross Distribution) amount not flowing to Line 1 of Form 5329 (Early distribution included in income). How is this done? I'm using ProSeries Basic.

[Camp1040]

Did you enter a 1 code in box 7? And fill in taxable amount in box 2.

[boadojre001]

Already done that, code 1 in box 7 and the taxable amount in box 2. The taxable amount still didn't flow to line 1 of Form 5329. My product updates are all current, too.

[Camp1040]

Is the penalty  calculating on the 1040?

[boadojre001]

The whole penalty amount for the early distribution was calculated and is reflected on Schedule 2 of the 1040. The exception amount for First Home Puchases(Line I on Form 5329-Distributions Not Subject to Additional Tax Smart Worksheet = $10,000.00). The taxable amount of the early distribution on Line 1 of the Form 1099-R worksheet does not flow to Line 1 of Form 5329(Early distribution included in income). This is needed to calculate the amount subject to additional tax(Line 1 minus Line 2 = Line 3) . Then, the additional tax would be reflected on line 4 flowing to Schedule 2(which is less than the penalty amount for the whole distribution). Is this correct?

[Camp1040]

It worked for me.

[boadojre001]

How did you do it? Is there something in the 1099-R worksheet that I need to do(like check/click) so the info will flow to the form 5329? Thank you ever so much for your help. I really appreciate it. 

ALOHA

[Camp1040 · Accepted solution]

I filled out box 1,   box 2 with the same amount as box 1, and I put a code 1 in box 7 , don't mess with the rest of the worksheet.

Then go to the 5329 worksheet and enter $10,000 for the home exclusion.

Let me know if that works for you.

[Camp1040]

What was the problem?

Your solution may help some other folks.

[boadojre001]

I was working on a return for a married couple filing jointly. The 1099-R was the spouse's and I did not check the box on the 1099-R worksheet. It worked after I have checked the box. Again, thank you so much. I really appreciate your help.