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The tax code allows up to $10,000 to be withdrawn from an IRA (Roth or regular) and put towards the purchase of a first home without having to pay the normal 10% penalty for an early distribution.

When this is done, how should it be reported back to the IRS when filing your tax return? I assume there are one or more forms dedicated to this purpose?

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    @joe, why not write this as an answer? – littleadv Mar 9 '13 at 22:40
  • @JoeTaxpayer Without an actual answer, this question will remain in the "unanswered" list indefinitely (unless we delete it, which helps nobody!) In light of that, would you be inclined to re-post your comment as an answer? e.g. Provide the link, perhaps a very brief summary? Then I can +1 your answer and we will clean out an unanswered question :) I could post this answer myself, but then I'd be getting the reputation you ought to get for answering it. – Chris W. Rea May 5 '13 at 13:41
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You use form 5329 to explain why you took a withdrawal that you are not paying tax on. The instructions are brief and helpful.

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