1099-R

[stemonte]

I submitted my 2020 tax return and it was accepted by IRS. Then yesterday I received a 1099-R from Brighthouse for an annual distribution of 17K from an annuity with no taxes deducted. My financial planner Pershing LLC received the 17K and dispurses over 12 months along with dividends from other investments. Those monthly payments were all reported on a 1099-R issued by Pershing LLC. That 1099-R shows Fed and State taxes withheld. Question: Do I need to file an amended return? Or should the 1099-R that I initially used in filing my return suffice?

[LinaJ2020]

It depends.  Since you have already submitted your tax return, you will have to wait until the IRS either accepts or rejects your return. You cannot return to the program to make any changes before that. 

If your return got rejected for whatever reasons, you can return to the program to add your 1099-R along with other changes.  You do not need an amendment 1040-X.

If your return has been accepted, you will have to amend your return by filing a form 1040X.  You should not try to amend your return until it has been fully processed and you have received your refund or your payment has cleared.

Beginning with the 2019 tax year, you can e-file amended tax returns. If you used TurboTax to prepare Form 1040-X, follow the software's instructions to e-file the amendment.

To see how to amend your taxes, click here: 

Steps to amend in TurboTax

How to file amendment

If you are under age 59 1/2, the distribution from the retirement accounts is considered as an early withdrawal.  Generally, you are subject to an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the Section 2202 CARES Act, if your distribution is related the Covid-19, you will not be liable for this additional penalty.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty.