Good morning, all.
I took a $9600 withdrawal from a qualified 401k last year for a Covid related lay off. TurboTax is telling me I don't have to pay the 10% penalty, but it's not actually removing it from my tax liability. Also, it's not generating an 8915-E so I can amortize the income tax over the next three years. Any idea how to get TT to get it right?
I've deleted the 1099 and reentered it answering all the questions, and, again, told I was exempt from the penalty, but my amount owed stays the same. If I check the box on the 1099 entry screen saying it's exempt it does remove the penalty so I know it can do the math. The new algorithm for handling COVID exemptions doesn't seem to work, however.
