U.S. · Tax forms
Schedule 2 line 8, additional tax on IRAs.
When Form 5329 is required and when you can enter 10% directly.
Line 8 (“Additional tax on IRAs or other tax-favored accounts. Attach Form 5329 if required. If not required, check here”) holds the extra tax from early distributions, excess contributions, certain taxable distributions and missed minimum distributions. Usually the amount comes from Form 5329; if only an early distribution coded 1 applies, you can multiply the taxable amount by 10% and check the box instead.
Look up a line item
Result
Situations listed in the 2025 line 8 instructions
| Situation | Where it points | What the instructions say |
|---|---|---|
| Early distribution | Form 5329 | You received an early distribution from an IRA or other qualified retirement plan, an annuity, or a modified endowment contract entered into after June 20, 1988, and the total distribution was not rolled over |
| Excess contributions | Form 5329 | Excess contributions were made to your IRA, Coverdell education savings account (ESA), Archer MSA, health savings account (HSA) or ABLE account |
| Taxable distribution from a Coverdell ESA, QTP or ABLE account | Form 5329 | You received a taxable distribution from a Coverdell ESA, qualified tuition program or ABLE account |
| Missed minimum distribution | Form 5329 | You did not take the minimum required distribution from your IRA or other qualified retirement plan by April 1 of the year following the year you reached age 73 |
| Only an early distribution, code 1 correct in box 7 | Line 8 directly, check the box | Multiply the taxable amount of the distribution by 10% (0.10), enter it on line 8, and check the box on line 8; no Form 5329 needed |
| Early distribution but code is wrong or an exception applies | Form 5329 required | You must file Form 5329 if code 1 is incorrectly shown in box 7 of Form 1099-R or you qualify for an exception, such as qualified medical expenses, higher education expenses, first-time homebuyer or reservist distributions |
The shortcut and its limits
The instructions give a narrow exception. If only the early-distribution item applies and distribution code 1 is correctly shown in box 7 of all your Forms 1099-R, you skip Form 5329: multiply the taxable amount by 10% and enter it on line 8, then check the box on line 8 to say Form 5329 was not required. The taxable amount is the part you reported on Form 1040 line 4b or 5b (or on Form 4972).
When Form 5329 cannot be skipped
If the 1099-R code is wrong, if you qualify for an exception (the instructions list qualified medical expenses, qualified higher education expenses, qualified first-time homebuyer distributions and a qualified reservist distribution), or if any of the other three situations applies, use Form 5329 and its instructions for definitions and amounts. The Form 5329 total is what you carry to line 8.
Check the code first
Your Form 1099-R box 7 code decides which path you are on: the shortcut applies only when distribution code 1 is correctly shown in box 7 of all your Forms 1099-R. If the code is wrong, the instructions require Form 5329.
Worked example
Marcus took an $8,000 early distribution from a traditional IRA. Form 1099-R box 7 shows code 1, he did not roll it over, and the full $8,000 is taxable and reported on Form 1040 line 4b. Only the early-distribution item applies, so he enters 10% of $8,000 = $800 on line 8 and checks the box. Had he qualified for a medical-expense exception, he would file Form 5329 instead. Names and figures are made up.
More line pages in this set
Related lines: Schedule 2 line 3, Schedule 2 line 21.
Sources
- Instructions for Form 1040 and 1040-SR (2025): the Schedule 2 line instructions on this page. Schedule 2 instructions, Line 8: “Additional Tax on IRAs, Other Qualified Retirement Plans, etc.” Page last reviewed or updated May 7, 2026. Read November 2, 2026.
- Schedule 2 (Form 1040) 2025: the printed line labels and arithmetic. Read November 2, 2026.
Tax year 2025 form and instructions. Line numbers and labels can shift between years, so check them against the form for your tax year. Names in worked examples are made up.
Frequently asked questions
What is Schedule 2 line 8?
The additional tax on IRAs and other tax-favored accounts: early distributions, excess contributions, certain taxable distributions and missed required minimum distributions, usually figured on Form 5329.
When can I skip Form 5329?
When only an early distribution applies and distribution code 1 is correctly shown in box 7 of all your Forms 1099-R. Multiply the taxable amount by 10% and check the box on line 8.
What do I enter if I qualify for an exception?
You must file Form 5329. The instructions list examples such as qualified medical expenses, qualified higher education expenses, qualified first-time homebuyer distributions and a qualified reservist distribution.
Does line 8 cover missed required minimum distributions?
Yes. The instructions list not taking the minimum required distribution by April 1 of the year after you reached age 73 as one of the situations to check against Form 5329.
What does the checkbox mean?
It tells the IRS you did not need to file Form 5329 because the 10% shortcut applied.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.