I haven't a clue as to if I need to claim it as income, all of it or just what I have made above and beyond my inital deposit.
Does anybody know what I need to do?
2007-04-01 07:07:12 · 3 answers · asked by jerisdream3 2 in Business & Finance ➔ Taxes ➔ United States
Yes that did help, thank-you.
I am not a first time home buyer and my 1099 only has the gross distribution amount on it. Does that mean that I have to claim the whole distribution or because there isn't anything in the taxable amount box that I don't have to claim any of it?
2007-04-01 07:19:10 · update #1
You'd report the gross distribution, but zero for taxable amount, just like the 1099-R shows.
2007-04-01 09:33:55 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If you are a first-time home buyer, then you can use up to $10,000 for the purchase of your home and not be taxed on the money as income tax. It also depends on your age.
Roth contributions are after-tax dollars, so there is no penalty involved with taking an early distribution. There are more factors that could also weigh in, depending on your income for the year, and if you've made contributions into any other IRA accounts. You'll get a 1099 at the end of the year, and it will give you the numbers you'll need for when filing your taxes.
Hope that helped a little! (I'm a registered/licensed financial representative, and dealt with Roth IRAs for 7 years now.)
You could also look up more info on irs.gov. You can do a search there.
2007-04-01 14:12:45 · answer #2 · answered by Shawn_Sunshine 3 · 0⤊ 1⤋
It depends on your age, and if you had the Roth IRA for at least 5 years before taking the distribution.
If you did not meet the 5 year rule, and are not at least age 59 1/2 the distribution could be taxable, as well as be subject to 10% penalty tax.
2007-04-01 15:51:20 · answer #3 · answered by tma 6 · 0⤊ 1⤋