Updated October 17, 2026. Quick answer: Line 8 is the additional tax on IRAs and other tax favored accounts. The instructions send you to Form 5329 to find out whether you owe it. In one narrow case, when only an early distribution applies and Form 1099-R shows code 1 in box 7, you can skip Form 5329 and enter the result of a simple multiplication on line 8.
What line 8 asks for
The form’s caption for line 8 reads “Additional tax on IRAs” and other tax favored accounts. The caption goes on: “Attach Form 5329 if required.” It continues “If not required, check here”. The instructions list the situations that point you to Form 5329: “If any of the following apply, see Form 5329 and its instructions to find out if you owe this tax and if you must file Form 5329.” The Form 5329 page is Form 5329 explained.
The situations the instructions list
The first is “You received an early distribution from (a) an IRA or other qualified retirement plan, (b) an annuity, or (c) a modified endowment contract entered into after June 20, 1988, and the total distribution wasn’t rolled over.”
The second is “Excess contributions were made to your IRA, Coverdell education savings account (ESA), Archer MSA, health savings account (HSA), or ABLE account.” The third is “You received a taxable distribution from a Coverdell ESA, qualified tuition program, or ABLE account.” The fourth is “You didn’t 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.”
The exception: skipping Form 5329
The instructions give a shortcut: “If only item (1) applies and distribution code 1 is correctly shown in box 7 of all your Forms 1099-R, you don’t have to file Form 5329.” In that case “multiply the taxable amount of the distribution by 10% (0.10) and enter the result on line 8.” The instructions also say “Also check the box on line 8 to indicate that you don’t have to file Form 5329.”
The shortcut has limits. The instructions say “But you must file Form 5329 if distribution code 1 is incorrectly shown in box 7 of Form 1099-R or you qualify for an exception”. The box 7 codes are explained on the 1099-R box 7 codes page, and code 1 on the 1099-R code 1 page.
Where the number comes from
If you file Form 5329, line 8 takes its figure from that form. If you use the shortcut, the instructions define the base: “The taxable amount of the distribution is the part of the distribution you reported on Form 1040, 1040-SR, or 1040-NR, line 4b or 5b, or on Form 4972.” The exceptions that would require Form 5329 are covered on the page about early withdrawal penalty exceptions.
Where it goes next
Line 8 is one of the lines added on line 21, which reads “Add lines 4, 7 through 16, 18, and 19. These are your total other taxes.” and then “Enter here and on Form 1040 or 1040-SR, line 23”. The whole schedule is on the Schedule 2 (Form 1040) page and the return itself is on the Form 1040 page.
Edition and line numbers
This page reads the 2025 Schedule 2 (Form 1040) and the 2025 Form 1040 instructions, the current files irs.gov served on 2026-10-17. They are the files for the tax year 2025 return, filed in 2026. The schedule says “Attach to Form 1040, 1040-SR, or 1040-NR.” Its line instructions are part of the Form 1040 instructions, under the heading “Instructions for Schedule 2”. Check the tax year printed on the schedule you are filling in and use the line numbers on that year’s schedule, because a different year’s schedule can number or word its lines differently.
Common mistakes
- Using the shortcut when the box 7 code is wrong. The instructions say “But you must file Form 5329 if distribution code 1 is incorrectly shown in box 7 of Form 1099-R”
- Using the shortcut when an exception applies. The instructions name “qualified medical expenses, qualified higher education expenses”, and other exceptions it lists.
- Forgetting the minimum distribution case. Item 4 says “You didn’t 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.”
Related: Form 5329 explained, 1099-R box 7 codes, early withdrawal penalty exceptions, and Form 1040.
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Answer againSources
- Instructions for Form 1040 and Form 1040-SR (2025): https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
- Schedule 2 (Form 1040), Additional Taxes (2025): https://www.irs.gov/pub/irs-pdf/f1040s2.pdf
Read from the IRS documents linked above on October 17, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.