"You don't have to pay additional tax on your early withdrawal." I qualify for the COVID exemption but it seems like I'm still subject to the 10% penalty despite this.

Form 8915-E is being prepared for release and it scheduled for release today. This form is designed to eliminate the penalty. Keep checking back to see if you can finish your return.

Form 8915-E: Qualified 2020 Disaster Retirement Plan Distributions and Repayments, which is used for COVID-related early distributions, will be ready for e-file starting February 25th.  It was recently moved out of the draft form by the IRS.

• For more information about this form use this link: Qualified 2020 Retirement Distributions due to COVID

• Sign up for email notification for Form 8915-E as soon as it's available by clicking this link.

Use the steps below to complete the process once.

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1099-R”
3. Click on “Jump to 1099-R” you should see the “Your 1099-R Entries” screen and will click "edit"
4. Continue until "Tell us if any of these uncommon situations apply" screen
5. Select "I took out this money because of a qualified disaster (includes COVID-19)"
6. Answer the any question.