Taxpayer did not report the income used from her 401k to purchase a home first time in the amount of 18234. I am amending her return and adding form 5329. To my understanding only the first 10k is included as income. Is that correct and if so do i exclude the remaining 82334 on form 5329 . Sorry first time dealing with these specific form. for 2017 return
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It's ALL taxable income, as long as its from an IRA, not a 401K, you can exclude the 10% penalty for early withdrawal on the first 10K.
That's all the breaks you get is the early withdrawal penalty exception up to the first 10K in distribution.
It's ALL taxable income, as long as its from an IRA, not a 401K, you can exclude the 10% penalty for early withdrawal on the first 10K.
That's all the breaks you get is the early withdrawal penalty exception up to the first 10K in distribution.
Didn't she get a matching notice from IRS?
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