This option will be selected on a Form 8915-E. The IRS has not yet finalized the Form 8915-E for retirement plan distributions under the CARES act, so this form cannot be included in the TurboTax program.
The IRS has not communicated when the form will be finalized for inclusion on the 2020 federal tax return.
We estimate it will be sometime in February 2021 before the form is available. You can watch this link for the form availability. Currently, the form is not listed here since there is no estimated date. Once there is, you will find the form listed with the date available.
IRS forms availability table for TurboTax individual (personal) tax products
So once the form is finalized and released by the IRS it should be available in TurboTax and will be able to do it there correct?
Yes! We are just waiting on the IRS to go through forms. Once they release it, we will incorporate it, test it and make it available for use.
Here is what the IRS has About Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments (Use for Coronavirus-Related and Other Qualified 2020 Disaster Distributions)
You can see it is marked draft.
It appears that form 8915e from the IRS is ready. How does that change the way TT handles cares act related withdrawals, because I'm inputting the info off of my 1099-R and it is still applying the 10% early withdrawal penalty??
The release date for the 8915-E has been extended until tomorrow 02/26. Please sign-up here and we will email you once the form is live in case if the date is extended further.