2002362
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Please follow these steps to enter your 1099-R and trigger Form 8915-E:
If the COVID related questions do not come up then please comment what codes your 1099-R has in box 7.
Those who qualify as individuals directly impacted by the pandemic will be able to withdraw up to $100k from their retirement accounts without facing the 10% early withdrawal penalty.
You qualify if:
You can choose to have the distribution taxed over 2020, 2021, and 2022 instead of only in 2020. You’ll have three years to pay back the funds you withdrew, without the amount impacting that year’s cap on contributions. If you pay back the amount within that time, you’ll be able to claim a refund on those taxes paid when you file an amended tax return. Please see IRS Coronavirus-related relief for retirement plans and IRAs for more details.
I am still seeing this issue as well. When filling out federal information, it states "You are eligible for the COVID-19 exception. You do not have to pay the additional tax on your early withdrawal." Then after completing the state forms, it gives me the following error "Form 1: Penalties on IRA We're still working on updates related to Penalties on IRAs, retirement plans, MSA's distributions (Form 1099-R) that qualify for disaster or covid relief." When I go back into the state information, under Retirement and Medical Savings Plan Penalty Taxes, it says "You have a federal retirement penalty taxes of $xxxx." So the federal is also not removing the early penalty and it is transferring to state. Can someone please let us know when this is resolved?
Thanks for your feedback!
Unfortunately, the COVID related questions do not come up. In BOX 7 of my 1099R is the code "01". Is that the reason and/or do I need to get my 1099R form adjusted?
@markus3 wrote:
Thanks for your feedback!
Unfortunately, the COVID related questions do not come up. In BOX 7 of my 1099R is the code "01". Is that the reason and/or do I need to get my 1099R form adjusted?
There is no code "01", just code "1".
No that is not the reason. Delete the 1099-R and re-enter. It should ask if it was COVID related and ask a series of questions to see of you qualify.
Are you using the desktop or online version - the interviews are different.
Thank you! On my PDF of the 1099-R it says 01 in box 7.
However, I guess I found the issue. I automatically import the forms and I never got the question about Covid. Now I entered them forms MANUALLY and I'm getting the questions and it works!!!
Thank you soooo much.
Yes, Import comes from your financial institution and they cannot answer the COVID questions for you.
Import only populates the 1099-R form, you still must edit it to answer the followup questions.
Does anyone know when the updates/fixes related to COVID will be available for the state returns (e.g. NY)? I'm still showing all the taxes in there.
Does anyone know when the updates/fixes related to COVID will be available for the state returns (e.g. NY)? I'm still showing all the taxes in there.
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