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If your pension distribution is coded as being taxable, you will see a screen in TurboTax that says Was This a Withdrawal due to COVID-19 or a Qualified Disaster Distribution? after you enter your form 1099-R. When you indicate that it is, then you will see the option to spread the taxable amount over three years.
If your distribution has a wrong code in box 7, you will have to request a corrected form from the issuer.
I have the same problem. The screen ,
Never appears.
If you want to spread the tax, do not put a checkmark in the box that says ''I want to pay all of the tax in 2020''. When you click Continue, you should be done. TurboTax should only include 1/3 of the total distribution on Form 1040, but you won't see Form 8915-E when you are entering the 1099-R. If TurboTax isn't treating your covid-related distribution correctly, use the link in the article below to sign up for notifications.
Why do I still get 10% penalty on the withdraw of my retirement even though I answer the questions c... @novodka44
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