SamS1
Expert Alumni

Retirement tax questions

The form is working.  You may need to delete the 1099R with the covid distribution then re-add it, if it was added before the update.  You can go to forms mode and select the 1099R in the left hand margin, then select Forms in the top margin and delete.  Go back to Step by Step and re-enter or import the 1099R.  You should see a series of question screens regarding the distribution.  You can review your entries in Forms mode, selecting the 1099R, then scrolling down to the disaster relief section.  

 

The 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 if 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.