I am still seeing this issue as well. When filling out federal information, it states "You are eligible for the COVID-19 exception. You do not have to pay the additional tax on your early withdrawal." Then after completing the state forms, it gives me the following error "Form 1: Penalties on IRA We're still working on updates related to Penalties on IRAs, retirement plans, MSA's distributions (Form 1099-R) that qualify for disaster or covid relief." When I go back into the state information, under Retirement and Medical Savings Plan Penalty Taxes, it says "You have a federal retirement penalty taxes of $xxxx." So the federal is also not removing the early penalty and it is transferring to state. Can someone please let us know when this is resolved?
