You do not need to list Covid-19 on your tax return. If you are referring to a retirement related distribution due to Covid, you would need to file a Form 8915-E to avoid the 10% penalty from your distribution. To answer Covid related questions under 1099-R, see steps below. If you are using TTO, there are no known issues. If you are using the desktop option, we are working to resolve this issue. Click here: Covid related questions
To enter your Form 1099-R in the program, follow here:
In TurboTax online,
- Sign in to your account and select Pick up where you left off
- From the upper right menu, select Search and type in 1099r and Enter
- Select the Jump to 1099r
- Follow prompts to answer Covid related questions.
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.
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