No, TurboTax will take care of that. The form to defer the income and penalty exclusion is not ready in TurboTax yet. The form 8915-E will be used for penalty relief from early retirement plan distributions and include the option to spread the distribution income over 3 years. This may be a good option is the distribution is pushing you into a higher marginal tax bracket. You may end up paying less tax if you spread the distribution over the 3 years.
At this point and time the Form 8915-E Qualified 2020 Disaster Retirement Plan Distributions and Repayments is not finalized. We currently do not have an estimated date when the form is ready.
Please sign-up here and we will email you once the form is live.
The pandemic has affected your taxes in many ways. Including reporting in TurboTax the amount of stimulus money you received. Click Here for more information on how the Pandemic affected your 2020 taxes.
