JohnH Posted October 4, 2010 Report Share Posted October 4, 2010 I ran into an unusual situation with Form 5329 in ATX and am curious if anyone else has seen it & how you handled it. The taxpayer took a $40K withdrawal form their IRA, with $12K being used to pay education expenses for their dependent child. When preparing the return, I found that they also had about $3K of deductible medical expenses (over the 7.5% haircut). Consequenlty, they qualified for two different exceptions but only one code can be entered on the 5329 in ATX. There doesn't seem to be an option for splitting the entries, so I just entered the entire $15K on the 5329 and used the code for the education expenses since it comprised most of the adjustment. ( I guess the other option would have been to manually enter the scond code on the 5329, but I didn't do that). Does anyone have a better way to do this, or is there a work-around in ATX that I missed? Quote Link to comment Share on other sites More sharing options...
jainen Posted October 4, 2010 Report Share Posted October 4, 2010 >>only one code can be entered on the 5329 in ATX<< According to the INSTRUCTIONS to Form 5329 at My link, you should use #12 "if more than one exception applies." Quote Link to comment Share on other sites More sharing options...
JohnH Posted October 4, 2010 Author Report Share Posted October 4, 2010 INSTRUCTIONS? Who said anything about reading the instructions? I think that's very unfair and you should take it back. (But thanks) Quote Link to comment Share on other sites More sharing options...
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