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Retirement tax questions
In TurboTax Online, enter your 1099R as received. The following screen will ask for uncommon situations and there you will indicate it is Covid 19 distribution. The screens that follow will ask follow up questions on the distribution and repayment. Any repayment made prior to filing your 2020 tax return can be used to reduce the taxable portion of the distribution.
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
March 7, 2021
2:07 PM