@DoninGA I did delete 1099-R and inputted again, but Hawaii has same error message for Exclusion.  I am able to file Federal not state. 

Hi,

I am using Turbotax online. This question is as of 5 March 2021.

I have a CARES Act distribution from my workplace Roth 401K. After I enter my 1099-R, I am not getting any covid/cares act related questions and the software is charging me the 10% penalty.

TT takes me to an exception screen "Do any of these situations apply" - but there is no COVID/Cares act option there.

please help!

---

@sanket2016 wrote:

Hi,

 

I am using Turbotax online. This question is as of 5 March 2021.

I have a CARES Act distribution from my workplace Roth 401K. After I enter my 1099-R, I am not getting any covid/cares act related questions and the software is charging me the 10% penalty.

 

TT takes me to an exception screen "Do any of these situations apply" - but there is no COVID/Cares act option there.

 

please help!

---

What is the code in box 7?  Did you mistakenly check the IRA box?  Is there a taxable amount entered in box 2a?

The code in box 7 is 1B. It's a early withdrawal from Roth 401k. I need to pay tax on the Roth earnings.

I did NOT check the IRA box - I've triple-checked my 1099-R entries several times.

Yes, there is a taxable amount in box 2a.

My 401k plan administrator issued me a "Qualified CARES act withdrawal certificate" because I meet the eligibility criteria.

Issue: Right now, TT is charging me the 10% penalty and not giving me any option to spread tax over 3 years. (There is no mention of a Cares Act withdrawal in all of the 1099-R steps, or even after wrapping up Federal income.)

This issue is occurring in Federal taxes. I've gone through all the steps and finished my Federal taxes; I haven't started my state taxes yet.

Thanks

@dmertz You have this issue of a Roth 401(k) distribution with a code of 1B covered perfectly.  Could you assist?

Currently the online version will not present the COVID related questions for a 1099-R with a box 7 code that contains a "B".

User @dmertz  posted the following workaround for the Online version 1099-R code B bug.

In online TurboTax a workaround is needed to get around the flaw in TurboTax that prevents it from asking if the distribution is COVID-19 -related when there is a code B in box 7. Enter the Form 1099-R as is but omit the code B, enter only code 1, 2 or 7 (If box 7 has only code B, temporarily enter code 7 instead). Complete the follow-up questions, then, when you reach the Review Your 1099-R Info page, edit this 1099-R and add the code-B selection. The COVID-19-related information will remain even though you won't have access to those questions with the code B present.

@Jedi4380 I did edit 1099-R but it still gives me

Retirement Exclusion message for Hawaii. Glad it worked for you. I’m also using premier for mac. 

@huamapu False alarm. NY rejected my return saying they weren't ready to process Form 8915-E. The federal was accepted though. TurboTax has a message (screenshot below) that hopefully by 3/11 I can re-file.

FYI to other New Yorkers. 

@Jedi4380 Thank you for the information.  Hopefully HI will be the same date. 🤔

After 4 prior dates mentioned by TurboTax, I can’t say I’m holding my breath here for 03/11  ..! @Jedi4380 

Thank you @macuser_22 .

The workaround for code 1B in my 1099-R worked for CARES act distribution.

I am now waiting for the New York state tax software to be updated for COVID distribution.

Thanks for your help!

Update 3/9: I switched to TaxAct and finished filing my taxes. Pretty much every other tax software out there has Form 8915-E updated for Federal and State. After 12 years of using TurboTax, happy to switch. Bugs and other issues in TurboTax are just not worth my time anymore.

Does anyone know when TT is going to fix the Retirement Distribution Exclusion?  State of Hawaii taxes is going to be due in about a month.  This is the only thing that I'm waiting for.  I hope someone from TT can give an answer.

Please see the information in the link below for an update.

Form 8915-E state returns update

@huamapu 

@JotikaT2 Too late 😂. Likely my last year using TT because of this

All, state filing now works with form 8915-E online and desktop.