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I'm at, "These Situations May Lower Your Tax Bill" but nothing says Covid-19 Where do I enter information if I qualify for the 2020 Disaster Retirement Plan Distribution?
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Retirement tax questions
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 the Jump to 1099r
- Follow prompt
- On screen," Do any of these situations apply to you?" select the first one related Covid
- On screen," Any Periodic Payments?" select No
- Next screen, " Was this withdrawal due to Covid 19 or a Qualified Disaster Distribution?" select Yes, follow prompts
- Follow prompts
If you are under age 59 1/2, the distribution from the retirement plans and IRAs is considered as an early withdrawal. Generally, you will pay both regular tax plus an additional 10% penalty of your entire distribution unless you met certain criteria. Due to the CARES Act, if your retirement 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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Retirement tax questions
Thank you, I believe I filled out my 1099-r prior to the CARES Act implementation. I cleared and resubmitted the 1099-r and had the prompts I was needing.