Cares Act Withdrawl

[nyhc1234]

Hello hope everyone is well,

I had a positive COVID test and DO qualify for the early withdrawal, however I am entering the withdrawal in and it is saying I need to revisit this section later because IRS hasn’t released information in time for the version of TurboTax I am using. Is anyone else having this issue? There is also nothing asking me about the CARES act withdrawal to remove the 10% penalty. 

[DoninGA]

The IRS has not finalized the Form 8915-E which will be used for the CARES act withdrawals from a retirement account.

The IRS has not given any indication when this form will be available for use with the 2020 federal tax return.

We estimate is may be available sometime in February.

[JRKC]

Is there somewhere we can sign up to get notified when it is available?  I cannot file my taxes until that update has been made in TurboTax and would prefer not to have to come back and check all the time.  Maybe an alert I can sign up for from the IRS?

[SamS1]

You can check here.  This will give you latest information on the status of form availability in TurboTax.  From reviewing the listing, it looks like the 8915 form series will not be available until 2/18. 

The form 8915-E will deal with the Cares Act retirement distribution exclusions and has not been released by the IRS.  We do not anticipate this form being completed and released until mid-February.  After you enter your retirement plan distribution in the 1099R screen then continue, you will see a screen for "Uncommon Situations".  The first box relates to natural disasters, including Covis-19.  Once that box is active, you will be able to enter your 2020 pandemic retirement distribution information.

Good new is the IRS is not accepting or processing tax return until 2/12 so still plenty of time to get your return and completed with the first wave.

[Teshot]

I am also not finding anywhere that there are questions relating to the reason for the early withdrawal.  I followed the instructions and get exactly the same thing every time.  Has this been updated by TT?

[DoninGA]

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@Teshot wrote:

I am also not finding anywhere that there are questions relating to the reason for the early withdrawal.  I followed the instructions and get exactly the same thing every time.  Has this been updated by TT?

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The software was updated across all platforms, online and desktop, on 02/26/2021, to include Form 8915-E for Covid-19 related withdrawals from a retirement account.

After you enter the Form 1099-R there will be a series of questions concerning the withdrawal, one of which will ask if this distribution was due to Covid-19.

If you do not see this question then delete the Form 1099-R and re-enter manually.

Enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R