How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Megan C Your Own Question
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
23669918
Type Your Tax Question Here...
Megan C is online now
A new question is answered every 9 seconds

I borrowed $10000 from my IRA in 2010 and used it for Higher

This answer was rated:

I borrowed $10000 from my IRA in 2010 and used it for Higher Education in 2010.I had not repaid the $10,000 by the end of 2011 and was thus issued a 1099-R.
On my tax return,will I pay the penalty or am I qualified to claim the exceptions?1099 is for 2011 but I used the money for Higher education in 2010.Please help

MyVirtualCPA :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

MyVirtualCPA :

As the funds were used for education, you would not be subject to the 10% early withdrawal penalty

Customer:

My problem is the 1099-R was issued a year later.It would have been easier if it was same year.I dont even have anything to show that I used it for school in the year the 1099 was issued as school ended previous year.Hope I make sense?

MyVirtualCPA :

Yes, you do make sense.

MyVirtualCPA :

And you still qualify for the exception

Customer:

ok

MyVirtualCPA :

Anything else you need assistance with today ?

MyVirtualCPA :

If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

Nothing Else.Thanks for your help

Megan C and 2 other Tax Specialists are ready to help you
Thanks, Tosin for your positive rating. Please come back and visit MyVirtual CPA for any of your tax, finance, or social security needs. It was a pleasure working with you today