Generally, if you are under age 59 1/2, you must pay a 10% additional tax on the distribution of any assets (money or other property) from your traditional IRA. Distributions before you are age 59 1/2 are called "Early Distributions." The 10% additional tax applies to the part of the distribution that you must include in gross income. It is in addition to any regular income tax on that amount.
From within your TaxAct return, click Taxes & Miscellaneous.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Expand the Additional Tax Payments section.
Click Add beside Additional Taxes on Qualified Retirement Plans.
Click Review next to Early distributions from a retirement plan.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Retirement Plan Income drop-down, then click [NAME] Additional taxes on qualified plans (Form 5329).
Click Review next to Early distributions from a retirement plan.
Enter the Early distributions included in income, select the Exception code, and enter the Exception amount.
Desktop
From within your TaxAct return, click Federal.
Click the Retirement Plan Income drop-down, then click [NAME] Additional taxes on qualified plans (Form 5329).
Click Review next to Early distributions from a retirement plan.
Enter the Early distributions included in income, select the Exception code, and enter the Exception amount.
If previous entries have caused an additional tax to be calculated for the return, you will see that amount on the screen titled Additional Tax - On Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.