On the Form 1099-R, check to Force Form 5329 –(If there is an early distribution penalty because the taxpayer is less than 59-1/2 years old, the penalty will show in the Other Taxes section of the 1040, Line 58 and no 5329 is required.) However if there is an exception to the penalty, check the box to force a Form 5329. On the Form 5329, the amount subject to penalty is shown on line 1
In TaxWise: Enter the appropriate code and the amount NOT subject to additional penalty. Check out the Form 1040, line 58 to ensure the correction is proper.