You'll need to sign in or create an account to connect with an expert.
If you have 2 withdrawals from the same financial institution, then the coding in box 7 must be different otherwise you would have received only 1 1099R. Review the coding in box 7. After entering the amounts in for the 1099R, you should see a the uncommon situations screen. You must check the box to indicate this is a covid 19 withdrawal. If one of the 1099s has a letter in box 7, there can not be a 1 as the second code as 1 is for non-Roth withdrawals.
The 8915-E will be used for penalty relief from early retirement plan distributions and include the option to spread the distribution income over 3 years. This may be a good option if the distribution is pushing you into a higher marginal tax bracket. You may end up paying less tax if you spread the distribution over the 3 years.
If one of these Forms 1099-R includes code B in box 7 and you are using online TurboTax, a workaround is needed to get around the flaw in TurboTax that prevents it from asking if the distribution is COVID-19 -related when there is a code B in box 7. Enter the Form 1099-R as is but omit the code B, enter only the code 1, 2 or 7 (If box 7 has only code B, temporarily enter code 7 instead). Complete the follow-up questions, then, when you reach the Review Your 1099-R Info page, edit this 1099-R and add the code-B selection. The COVID-19-related information will remain even though you won't have access to those questions with the code B present.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
davidkortebein
New Member
amart2486
New Member
tompatty66
New Member
bobarslan4567
New Member
Raph
Community Manager
in Events