1099-R COVID 19 hardship distrbution

[tzurw]

I enter my 1099-R but turbotax didn't removed my 10% early withdrew.

Were do I find it?

[SteamTrain]

Right Now...you don't...and you don't file your taxes until it is set up and removed.

The IRS has not relapsed the form needed to remove the penalty, and may not do so for a couple weeks.

Come back mid-late February to go thru things again and the way to remove the penalty might be released and ready by then.  No one really knows when they will release it.....but do not file until they do....and your penalty gets removed.

[Opus 17]

In their information update for tax professionals, the IRS has indicated that form 8915-E will be available on February 18, but that it cannot be e-filed.  You should expect that TurboTax will be able to produce the form 1 to 2 weeks after it is officially released by the IRS. The IRS estimate is not guaranteed and may change.

[LenaH]

The screen to designate your 1099-R withdrawal as money taken out due to Covid-19 is found on the 1099-R input screen. Although the forms are not available to be e-filed yet, you may enter your information now and revisit the area in TurboTax at a later date. 

You can input your 1099-R in TurboTax by following these steps:

1. Open your return. 
2. Search 1099-R with the magnifying glass tool on top of the page.
3. Click on the Jump to 1099-R link at the top of the results.
4. Answer yes to the question Did you get a 1099-R in 2020?
5. Click continue to the page Get ready to be impressed.
6. Follow the on-screen instructions.
7. On the page Tell us if any of these uncommon situations apply, put a check mark next to the statement I took out this money because of a qualified disaster (Covid-19). I have attached a picture at the bottom of my post for further guidance. 

Please keep in mind that the 10% early withdrawal penalty may be waived on up to $100,000 of retirement funds withdrawn if you are a qualified individual impacted by coronavirus.

You are a qualified individual if:

• You, your spouse, or dependent are diagnosed with COVID-19
• You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off
• You had hours reduced due to coronavirus
• You are unable to work due to your child care closing or reducing hours.

 @tzurw

[TonyJunior]

@LenaH Perhaps this screen is embedded within an update because as of today, I don't have this screen nor these options.

[LinaJ2020]

The issue has been submitted and is currently under investigation.  Please click on the following link and sign up for an email notification when it's fixed.  

Form 8915-E

Thank You for your patience

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.  

[BlueFeather]

Select "other reasons" than enter the amount of the distribution

[Opus 17]

The forms and interview section for a covid-related distribution are scheduled to be released on Feb 24 (although that might be the afternoon or evening and not necessarily first thing in the morning). 

[rashidjamal]

Hello Expert , 

Please help me and provide the suggestive advice for my situation. 

• I had taken a Corona Virus related IRA distribution from my 401k account in 2020 for an amount $92841 . I had received 1099 R and imported it into the 2020 tax return.
• I had chosen to distribute Income as a 3 years method and paid back $30948 into my 401k account and reported this in the form 8915 E and hence I did not have to pay any taxes on the 1/3rd portion of IRA distribution amount .
• The total amount is also reflected in 1040 column 5a (Pensions and annuities) . This total amount reported to FAFSA when I transferred the tax information automatically and considered as income when calculating EFC . 

My Concern 

• I think it should report to FAFSA only 1/3 rd of the amount into 1040 column 5a (Pensions and annuities)   which was reported into 8915 E( $30948 ) and since I Paid back so net should be zero into the  column 5a (Pensions and annuities)
• Did I reported wrongly the 1099 R total amount ? or I should report only 1/3 rd of 1099 amount too. 

Thanks,

Rashid 

[fanfare]

@rashidjamal 

Duplicate question asked earlier.