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alexanderpoyck
New Member

I'm at, "These Situations May Lower Your Tax Bill" but nothing says Covid-19 Where do I enter information if I qualify for the 2020 Disaster Retirement Plan Distribution?

 
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LinaJ2020
Expert Alumni

I'm at, "These Situations May Lower Your Tax Bill" but nothing says Covid-19 Where do I enter information if I qualify for the 2020 Disaster Retirement Plan Distribution?

Here are the steps:

 

In TurboTax online,

  1. Sign in to your account and select Pick up where you left off
  2. From the upper right menu, select Search and type in 1099r and Enter
  3.  Select the Jump to 1099r
  4. Follow prompt
  5. On screen," Do any of these situations apply to you?" select the first one related Covid
  6. On screen," Any Periodic Payments?" select No
  7. Next screen, " Was this withdrawal due to Covid 19 or a Qualified Disaster Distribution?" select Yes, follow prompts
  8. Follow prompts

If you are under age 59 1/2, the distribution from the retirement plans and IRAs is considered as an early withdrawal.  Generally, you will pay both regular tax plus an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the CARES Act, if your retirement distribution is related the Covid-19, you will not be liable for this additional penalty.  You will still pay the normal taxes like your wages and income.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty.

 

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2 Replies
LinaJ2020
Expert Alumni

I'm at, "These Situations May Lower Your Tax Bill" but nothing says Covid-19 Where do I enter information if I qualify for the 2020 Disaster Retirement Plan Distribution?

Here are the steps:

 

In TurboTax online,

  1. Sign in to your account and select Pick up where you left off
  2. From the upper right menu, select Search and type in 1099r and Enter
  3.  Select the Jump to 1099r
  4. Follow prompt
  5. On screen," Do any of these situations apply to you?" select the first one related Covid
  6. On screen," Any Periodic Payments?" select No
  7. Next screen, " Was this withdrawal due to Covid 19 or a Qualified Disaster Distribution?" select Yes, follow prompts
  8. Follow prompts

If you are under age 59 1/2, the distribution from the retirement plans and IRAs is considered as an early withdrawal.  Generally, you will pay both regular tax plus an additional 10% penalty of your entire distribution unless you met certain criteria.  Due to the CARES Act, if your retirement distribution is related the Covid-19, you will not be liable for this additional penalty.  You will still pay the normal taxes like your wages and income.  For more information from the IRS, click here: Covid Relief.  If your distribution is not related to the Covid, you will need to pay the penalty.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

alexanderpoyck
New Member

I'm at, "These Situations May Lower Your Tax Bill" but nothing says Covid-19 Where do I enter information if I qualify for the 2020 Disaster Retirement Plan Distribution?

Thank you, I believe I filled out my 1099-r prior to the CARES Act implementation. I cleared and resubmitted the 1099-r and had the prompts I was needing. 

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