DaveF1006
Expert Alumni

Retirement tax questions

Have you followed the precise steps listed below. If you do, you should be able to allocate your income over a 3-year period.

  1. Go to federal>wages and income>all income
  2. Retirement plans and Social Security>show more
  3. Ira (401K), pension plan Withdrawals(1099R) Start
  4. Here you will enter your 1099R.  After you are done with one and reach a summary screen, there will be an opportunity to enter more 1099's.
    1. Scroll through the next few screens until you reach a screen that says is this a withdrawal due to COVID-19 or a Qualified Disaster Distribution?
    2. You will say yes, this was withdrawn due to COVID 19
    3. Next screen says COVID-19 distribution Here you will indicate that all or some was a COVID 19 withdrawal.
    4. Next will ask about your COVID related stuff.  There is a checkbox that you must answer saying that you were financially impacted by COVID 19. This will waive the early withdrawal penalty.
    5. Then it asks if you repaid the distribution, you can say no unless you did.
    6. Then it asks if you want to pay the tax all the tax this year. leave the check box blank and continue.
    7. This will generate a 8915-E and will spread your taxable amount over a three-year period automatically.           [Edited 03-07-2021|5:17 PM PST]
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