Form 8915-E, that reports COVID distribution, isn't ready yet. The 8915-E Form is projected to be e-fileable starting 02/24/2020. Please sign up here to get notified when Form 8915-E is ready. Once the Form 8915-E is live please follow these steps to enter your 1099-R: Login to your TurboTax Account Click on the Search box on the top and type “1099-R” Click on “Jump to 1099-R” and enter your 1099-R (if you started this before you should see the “Your 1099-R Entries” screen and will click "edit") Continue until "Tell us if any of these uncommon situations apply" screen Select "I took out this money because of a qualified disaster (includes COVID-19)" (TurboTax will walk you through questions once this section is ready) Those who qualify as individuals directly impacted by the pandemic will be able to withdraw up to $100k from their retirement accounts without facing the 10% early withdrawal penalty. You qualify if: You, your spouse, or your dependent are diagnosed with COVID-19 You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off or having work hours reduced because of COVID-19 You’re unable to work due to child care closure or hour reduction because of Covid-19 You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19. You can choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. You’ll have three years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions. If you pay back the amount within that time, you’ll be able to claim a refund on those taxes paid when you file an amended tax return. Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.

Question

I am 55 and took a distribution from my IRA in 2020 because of Covid, how can show that on TurboTax so I don't have to pay the 10% penalty?

Forum|Forum|5 years ago
February 22, 2021
1 reply
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No text available

D

DanaB27

Form 8915-E, that reports COVID distribution, isn't ready yet.

The 8915-E Form is projected to be e-fileable starting 02/24/2020. Please sign up here to get notified when Form 8915-E is ready.

Once the Form 8915-E is live please follow these steps to enter your 1099-R:

Login to your TurboTax Account
Click on the Search box on the top and type “1099-R”
Click on “Jump to 1099-R” and enter your 1099-R (if you started this before you should see the “Your 1099-R Entries” screen and will click "edit")
Continue until "Tell us if any of these uncommon situations apply" screen
Select "I took out this money because of a qualified disaster (includes COVID-19)" (TurboTax will walk you through questions once this section is ready)

Those who qualify as individuals directly impacted by the pandemic will be able to withdraw up to $100k from their retirement accounts without facing the 10% early withdrawal penalty.

You qualify if:

You, your spouse, or your dependent are diagnosed with COVID-19
You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off or having work hours reduced because of COVID-19
You’re unable to work due to child care closure or hour reduction because of Covid-19
You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.

You can choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. You’ll have three years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions. If you pay back the amount within that time, you’ll be able to claim a refund on those taxes paid when you file an amended tax return. Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.

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J

JerryMc11Author

I did receive the reply that stated the form 8915-E would be available Feb. 24 and would solve my problem, but I have logged on yesterday and today and still don't see the update with this form. Has it not come out yet?

I

Irene2805

TurboTax Online has been updated to include Form 8915-E. If you are using TurboTax CD/Download, the update should be available later today (2/25/2021).

Go back to your 1099-R entry. After the 1099-R entry screen, you should seen screens pertaining to a COVID-19 or a Qualified Disaster Distribution. Enter the requested information to see if you're exempt from additional taxes on the distribution.

In TurboTax CD/Download you will be prompted to download any updates available when you open the program. You can also update the program while you have it open by following these steps:

Click on the Online link in the black bar at the top of the page.
Click on Check for Updates.
TurboTax will download and install any updates available. If there aren't any updates, you will receive the message "Your software is up to date."

@JerryMc11