Form 1099-R - Disability

If you received Form 1099-R with a Disability Code of 3, the distribution is not subject to the additional 10% tax, but the disability distribution is still included in taxable income.

See IRS Publication 575 for details.

To enter this distribution into the TaxAct program, follow the steps in the FAQ Form 1099-R - Entering Distributions from Retirement Plans.

On the screen Enter the remaining details from the Form 1099-R, click the Box 7 - First Distribution code drop-down, and select 3 - Disability.
On the Retirement Plan Income - Disability screen, check the Have not reached minimum retirement age box, if applicable.