In the program, you will enter info in the 1099-R section. Here are the steps:
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 Jump to 1099r
- Follow prompts
- On screen, Tell us if any of these uncommon situations apply, select the first option " I took out this money because of a qualified disaster ( includes COVID-19
If you are under age 59 1/2, the distribution from the IRA is considered as an early withdrawal. Generally, you will pay both regular tax and an additional 10% penalty of your entire distribution unless you met certain criteria. Due to the Section 2202 CARES Act, if your IRA distribution is related the Covid-19, you will not be liable for this additional penalty. You will still pay the normal taxes like your wages and income. 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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