Form 8915-E will be completed automatically based on how the interview for Form 1099-R is completed. Only the early withdrawal 10% penalty will be completely waived.
You still have to pay taxes if the distribution has not been returned yet. If the money is repaid by December 31, 2022, then the IRS advises to amend 2020 and 2021 to get refunded for any taxes paid.
To report the distribution in TurboTax, follow these steps:
- Search for 1099-R. Select the Jump to link in the search results.
- Verify that the questions were answered after entering Form 1099-R:
- Where is your distribution from?
- Pension/IRA distributions received before retirement age / None of the above
- Do any of these situations apply to you?
- I took out this money because of a qualified disaster (includes COVID-19)
- Continue through the rest of the questions before returning to your state return and go through any questions there. Some states are taxing the entire distribution in the year the distribution was received.
For more information, see:
What is Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions and Repayments?
Coronavirus-related relief for retirement plans and IRAs questions and answers, see question/answer 3.
