If you took a Covid-related 401(k) distribution, there is no 10% early withdrawal penalty (up to $100,000 withdrawn). That is going to be reflected in the new Form 8915-E.
However, you still have to pay regular income tax on the withdrawal. If you had some withholding when you took your withdrawal, that is the same as how you have withholding from your weekly paycheck.
NOTE: You may, if you choose, take the total tax you owe for your 401(k) withdrawal and spread that out over 3 years. That is another one of the upcoming TurboTax options we are all waiting for when they activate Form 8915-E.
